Buying Angolan Bonds from Abroad
Angola’s government bond market offers diaspora and international investors access to sovereign debt instruments denominated in Kwanza, with yields reflecting the BNA policy rate of 17.5% and inflation of 15.7%. Through Aviso 15/19, non-residents can participate in primary auctions and secondary market trading.
Available Instruments
| Instrument | Portuguese Name | Typical Maturity | Currency | Yield Type |
|---|---|---|---|---|
| Treasury Bills | Bilhetes do Tesouro (BTs) | 91, 182, 364 days | AOA | Discount |
| Treasury Bonds | Obrigacoes do Tesouro (OTs) | 2-10 years | AOA | Fixed coupon |
| USD-Linked Bonds | OTs indexados ao USD | 3-7 years | AOA (USD-indexed) | Fixed coupon + FX adjustment |
USD-linked bonds provide a partial hedge against Kwanza depreciation, as the principal is adjusted to reflect changes in the USD/AOA exchange rate (reference: 914.60).
How to Buy Bonds from Abroad
Step 1: Open a Non-Resident Investment Account Establish an account at an Angolan commercial bank under Aviso 15/19. Complete KYC documentation through the bank or an Angolan consulate.
Step 2: Fund the Account Transfer funds via SWIFT to your Angolan bank account. The bank will convert foreign currency to Kwanza at the prevailing interbank rate.
Step 3: Engage a Licensed Broker Government bond auctions are conducted through CMC-licensed dealers. Your bank may also act as broker for bond transactions.
Step 4: Primary Market (Auctions) The Ministry of Finance (MINFIN) conducts regular bond auctions, typically on a weekly or bi-weekly schedule. Your broker submits bids on your behalf. Results are published by the BNA.
Step 5: Secondary Market Outstanding bonds trade on BODIVA’s fixed-income platform. Liquidity varies by maturity and issue size. Secondary market prices are quoted through licensed intermediaries.
Tax on Bond Income
Interest income from government bonds is subject to IAC at 10%, withheld at source. Double taxation agreements may provide relief for investors resident in DTA partner countries. Capital gains on bond sales are also subject to 10% IAC.
Risk Considerations
- FX Risk: Kwanza-denominated bonds expose investors to exchange rate risk. At USD/AOA 914.60, depreciation erodes returns in foreign currency terms.
- Credit Risk: Angola’s sovereign ratings are S&P B- / Moody’s B3 / Fitch B-, reflecting elevated credit risk. Debt-to-GDP stands at 59.9%.
- Liquidity Risk: Secondary market liquidity for government bonds is limited compared to developed markets.
- Inflation Risk: With inflation at 15.7%, real returns depend on nominal yields exceeding the inflation rate.
- Repatriation Risk: FX conversion for repatriation depends on interbank market conditions and BNA FX auction availability.
Yield Comparison
Government bond yields typically exceed the BNA policy rate by a spread reflecting maturity and credit risk. Compared to the global risk-free rate, Angolan sovereign yields offer a significant premium, compensating investors for credit, currency, and liquidity risks.
For the full process of buying bonds as a diaspora investor, see the country-specific account opening guides: Portugal, Brazil, UK, and USA.