"The entry of a non-resident represents their confidence in the local market and in the reforms that have been carried out at the level of the economy and the financial system, with the country receiving foreign financing using the issuance of debt in national currency", said one official source of Standard Bank Angola to Lusa.
This operation, he added, "fosters liquidity in the capital and foreign exchange markets and the expansion of the base of investors in the securities market", which is particularly important in view of the proximity of the issuance of public debt in foreign currency (Eurobond), planned for next week, worth up to $3 billion, or €2.7 billion.
"To date, public debt issued in the local market has been acquired by domestic investors", added the official source of Standard Bank Angola, stressing that they are "Non-Adjustable Treasury Bonds (OTNR), with a maturity of six years ".
This locally issued public debt operation is normally reserved for local banks, which can buy “for the acquisition of securities for their own portfolio or submit purchase proposals on behalf of their customers”, which is what happened in this case.
"Standard Bank Angola submitted a proposal to buy bonds in the primary market on behalf of its non-resident client," said the same source.
Asked who the foreign investor is who bought Angolan public debt in kwanzas, Standard Bank said it could not reveal, and also did not confirm the information that it could be the Chinese CBCI, a London branch owned by the Bank of Commerce and Industry of China.
The information on the purchase of public debt in kwanzas for the first time by a foreign investor comes on the eve of the first Eurobond issuance by Angola since the end of 2019, scheduled for the week, in a value that can go up to US$3 billion.
Also next week, Angola will buy back up to US$750 million of debt already issued, seeking to capitalize on the good economic moment it is experiencing, with the exit from recession in 2021 and the improvement in the rating by financial rating agencies.
