Angola’s government bond market generates more questions from prospective investors than any other segment of the country’s capital markets – understandably so, given the combination of high nominal yields, frontier-market infrastructure, and a regulatory framework that is still evolving. The following answers address the most common questions from both domestic and international investors, drawing on current market data and the regulatory environment as of early 2026.
Buying and Access
How do I buy Angolan government bonds?
There are three main channels. First, the Portal do Investidor (investidor.minfin.gov.ao), the Ministry of Finance’s retail platform, allows individual investors to purchase Bilhetes do Tesouro (BT) and Obrigacoes do Tesouro (OT) directly through non-competitive auction orders. Second, investors can place orders through a BODIVA-licensed broker-dealer or the brokerage desk of any major Angolan commercial bank (BAI, BFA, BIC, Standard Bank Angola, Banco Economico, and others). Third, for secondary market purchases, a brokerage account with a BODIVA participant is required. A detailed walkthrough is available on the how to invest page.
What is the minimum investment?
The minimum purchase amount is AOA 1,000 (approximately USD 1.10 at current exchange rates), equivalent to one face-value unit (valor nominal) of a treasury bill or treasury bond. This is one of the lowest entry thresholds for sovereign debt in sub-Saharan Africa, and it applies on the Portal do Investidor. Institutional investors typically transact in multiples of AOA 1 million or more.
Can foreign investors buy Angolan bonds?
Yes. Non-resident investors can participate in both the primary and secondary domestic bond markets. The process requires a capital-market investment registration with the Banco Nacional de Angola (BNA), a local custodian bank that is a CEVAMA participant, and a kwanza-denominated bank account for settlement. Aviso 15/19 from the BNA explicitly protects the repatriation of capital and investment returns from capital-market instruments, permitting conversion to hard currency without additional central bank approval. For hard-currency exposure without local-market infrastructure, Angola’s Eurobonds trade internationally through Euroclear and Clearstream.
Do I need an Angolan bank account?
For domestic bond purchases, yes. Both the Portal do Investidor and broker-dealer channels require a kwanza bank account at a licensed Angolan commercial bank for settlement of purchases and receipt of coupon and redemption payments. You also need a Numero de Identificacao Fiscal (NIF), Angola’s tax identification number, and a CEVAMA custody account.
Bond Types and Instruments
What types of government bonds does Angola issue?
Angola issues three main categories of domestic government securities:
- Bilhetes do Tesouro (BT) – zero-coupon discount bills with maturities of 28, 63, 91, 182, and 364 days. These are the short-term instruments used for liquidity management and monetary-policy transmission.
- Obrigacoes do Tesouro Nao Reajustaveis (OTNR) – fixed-rate kwanza bonds with semi-annual coupons and maturities from 2 to 20 years. These are the backbone of medium- and long-term government financing.
- Obrigacoes do Tesouro Indexadas (OTX) – exchange-rate-indexed bonds whose principal adjusts for USD/AOA movements, with lower nominal coupons (typically 7-9%) because the indexation provides a built-in currency hedge.
Additionally, approximately USD 8 billion in Eurobonds – dollar-denominated bonds issued under international law – trade on global markets.
What is the difference between OTNR and OTX bonds?
OTNRs (Nao Reajustaveis, meaning non-adjustable) pay a fixed kwanza coupon and redeem at par in kwanza. The investor bears full currency risk. OTX bonds (Indexadas, meaning indexed) adjust the principal for changes in the USD/AOA exchange rate, so if the kwanza depreciates by 10%, the redemption value increases by approximately 10% in kwanza terms. OTX coupons are lower because the indexation mechanism compensates for currency risk. For investors who are bearish on the kwanza, OTX bonds offer a domestic alternative to holding Eurobonds. The treasury bonds page provides a full comparison.
How does OTX dollar indexation work in practice?
When an OTX bond is issued, the exchange rate on the issue date is recorded as the reference rate. At each coupon payment date and at maturity, the outstanding principal is adjusted by the ratio of the current USD/AOA rate to the reference rate. If the kwanza has depreciated from, say, AOA 850/USD to AOA 920/USD, the principal is scaled up by 920/850, and coupon payments are calculated on the adjusted principal. This means the investor’s dollar-equivalent return is largely protected from kwanza weakness, though the settlement remains in local currency.
Yields and Returns
What yields are currently available?
As of early 2026, indicative yields across the government bond curve are:
| Instrument | Indicative Yield/Coupon |
|---|---|
| BT 91-day | ~14.8% |
| BT 364-day | ~17.5% |
| OTNR 2-year | ~20.0% |
| OTNR 5-year | ~21.0% |
| OTNR 10-year | ~22.0% |
| OTX 5-year | ~8.0% (plus FX indexation) |
| Eurobonds (2028) | ~8.25% (USD) |
These are nominal, pre-tax rates. After the 15% Capital Application Tax, effective yields are approximately 85% of the headline figures.
Are real yields positive?
With inflation running at approximately 15.7% year-on-year and 91-day BT yields near 14.8%, short-dated real yields are roughly breakeven. Longer-dated OTNRs with coupons of 20-22% offer meaningfully positive real returns if inflation continues its downward trajectory – though this depends on the BNA sustaining its disinflationary monetary stance. The yield curve page tracks the relationship between nominal yields and inflation expectations.
How are BT yields calculated?
Treasury bills are zero-coupon instruments sold at a discount to face value. The yield is the annualised return implied by the discount. For example, a 91-day BT with a face value of AOA 1,000 purchased at AOA 963.5 delivers a return of AOA 36.5 over 91 days, which annualises to approximately 15.2%. The BNA publishes the weighted-average discount rate from each auction, which is the standard yield reference.
Auctions and Primary Market
How do government bond auctions work?
The BNA conducts competitive auctions on behalf of the Ministry of Finance. Licensed primary dealers submit sealed bids specifying the volume they wish to purchase and the yield (for BTs) or coupon rate (for OTs) they are willing to accept. The Treasury fills bids from the most competitive price upward until the target volume is filled. Results – including the weighted-average yield, marginal yield, bid-to-cover ratio, and total allotment – are published within hours.
Can individual investors participate in auctions?
Individual investors cannot submit competitive bids but can place non-competitive orders through the Portal do Investidor or through their bank. Non-competitive orders are filled at the weighted-average yield set by the competitive auction, ensuring retail investors receive the same rate as institutional participants.
How often are auctions held?
The Treasury publishes a quarterly issuance calendar. Generally, short-term BT auctions (28-day and 91-day) occur weekly, while 182-day and 364-day bills are auctioned fortnightly or monthly. OT auctions are held monthly or as needed based on the government’s financing requirements.
Maturity, Settlement, and Custody
What happens when a bond matures?
At maturity, the face value of the security (AOA 1,000 per unit for both BTs and OTs) is credited to the investor’s linked bank account through the CEVAMA settlement system. For OTNRs, the final semi-annual coupon is paid simultaneously with the principal redemption. For OTX bonds, the indexed principal (adjusted for exchange-rate movements since issuance) is paid. For BTs, the full par value is paid, with the discount from the original purchase price representing the investor’s return. The process is automatic and does not require the investor to take any action.
How does settlement work?
Primary market purchases settle on the terms specified in the auction notice, typically T+0 to T+2. Secondary market transactions on BODIVA settle on a T+2 basis through CEVAMA using delivery-versus-payment (DVP) mechanics. Securities and cash transfer simultaneously, eliminating settlement risk.
How are my bonds held?
All Angolan government securities are dematerialised – they exist only as electronic book entries in the CEVAMA central securities depository. There are no physical certificates. Ownership is recorded electronically, and investors can view their holdings through the Portal do Investidor or their custodian bank’s statements.
Coupon Payments
When and how are coupon payments made?
OTNR and OTX bonds pay coupons semi-annually on fixed dates specified at issuance. Payments are credited directly to the investor’s linked bank account through the CEVAMA system. The 15% Capital Application Tax is deducted at source before payment. BTs do not pay coupons – the return is realised at maturity through the discount mechanism.
What if I sell a bond between coupon dates?
If you sell an OTNR or OTX bond on the secondary market between coupon dates, the buyer pays you the clean price plus accrued interest – the portion of the next coupon earned since the last payment date. This ensures the seller is compensated for the time they held the bond during the current coupon period.
Tax Treatment
What taxes apply to bond income?
All interest income and capital gains on Angolan government securities are subject to the Imposto de Aplicacao de Capitais (IAC) at a flat rate of 15%. This applies to BT discount income, OT coupon payments, and profits from secondary-market sales. The tax is withheld at source by the custodian or paying agent.
Do foreign investors pay the same tax rate?
Yes, the statutory IAC rate of 15% applies equally to resident and non-resident investors. However, Angola has bilateral tax treaties with several countries – including Portugal, Brazil, South Africa, and the UAE – that may provide for reduced withholding rates. The tax guide details treaty-specific provisions.
Risks
What are the main risks of investing in Angolan bonds?
The principal risks include: credit risk (the possibility of sovereign default or restructuring, reflected in Angola’s B-/B3 credit ratings); currency risk (kwanza depreciation reducing the hard-currency value of kwanza-denominated returns); inflation risk (rising prices eroding real returns); liquidity risk (limited secondary-market trading, particularly for longer-dated instruments); and political/regulatory risk (changes in tax treatment, capital controls, or market access rules).
Has Angola ever defaulted on its bonds?
Angola has never defaulted on domestic treasury securities or international Eurobonds. During the COVID-19 crisis in 2020, the Republic participated in the G20 Debt Service Suspension Initiative (DSSI), which provided temporary relief on official bilateral debt service – but this programme explicitly excluded commercial bond obligations, which continued to be serviced in full.
How liquid is the secondary market?
Secondary-market liquidity on BODIVA is moderate and concentrated in shorter-dated instruments. Repos dominate trading volume, accounting for approximately 72% of total BODIVA bond turnover in 2024. Outright BT trades are more liquid than OT trades. Investors in longer-dated OTNRs (7 years and above) should expect wider bid-offer spreads and potentially slower execution. For institutional-scale positions, engaging a primary dealer bank directly is advisable.