"In terms of negotiation, in 2020, we had an amount of 1.18 billion kwanzas, which represented an increase of 35 percent over the previous year, said Odair Costa, Bodiva's executive director, on the sidelines of the presentation of the next one" Bodiva Forum 2021 ", scheduled for March 4th.
This amount was traded on the treasury bond exchange (MBTT) market.
Last year, 5,512 deals were made, 27 percent more than in the previous year, and there was an increase in custody accounts (accounts that identify holders of securities or other financial instruments registered with the Central Securities Depository of Angola), he added.
"We ended the year with about 15,000 accounts in our custody, however, our goal is to increase this number exponentially so that each Angolan can have, in addition to their financial account, at the bank, a custody account where they can make their savings profitable o maximum possible, since the market presents opportunities with very interesting rates of return ", he underlined.
The executive director made a positive assessment of the year 2020 for Bodiva.
"We saw a greater dynamic on the part of our members vis-à-vis 2019, and on the part of investors", he stressed, having been traded predominantly treasury bills with investors to privilege indexed bonds in view of the depreciation of the kwanza.
"[Investors] sought to hedge against this devaluation and, accordingly, invested heavily in treasury bonds indexed to the dollar and in non-readjustable treasury bonds, with very high yields and which can reach in some opportunities a 20 to 30 percent return to market until maturity ", he explained.
Bodiva currently has 26 members, essentially banks, with the Government's privatization program (Propriv) seen as an opportunity for the stock market.
Propriv foresees the sale of state assets via the stock exchange, with the entry of four companies in 2021: Sonangalp, TV Cabo, Mota-Engil and Multitel.
"We have been working together with the Ministry of Finance and IGAPE [State Asset and Participation Management Institute, the entity that manages the program] and Bodiva is prepared for the auction on the stock exchange, as is the case with BCI [Banco de Commerce and Industry], which will probably be the first asset to be traded in the market, not in the stock exchange segment, but in the organized over-the-counter market ", as for the IPO (Initial Public Offering) modality, said the administrator.
The official also pointed out that Bodiva is working with partners in the private sector, with around a dozen interested parties. Without giving details about the companies, Odair Costa indicated that they operate in the banking, insurance, oil and gas and cement sectors "looking at the market as a way to finance their expansion projects".
"We understand that domestic savings are not enough to finance this economic recovery, so we must focus on attracting foreign investment and in that sense Bodiva is fully prepared," he assured.
"At this moment, investors can enter and invest in Angola via the capital market, without any constraint", he continued.
Without mentioning whether there is any process in a more advanced stage, Odair Costa stated that this is a process that requires a long preparation time and must be "very well done" so that the investor is not disappointed in his expectations, estimating that a period between eight months and a year "is ideal for the company to enter the market and have a positive performance".
Odair Costa expects that by the first quarter of 2022, one or two companies will join Bodiva. "It is a dynamic process, we were not able, at the outset, to determine who will arrive first", he stressed.
