Overview
Bilhetes do Tesouro (BTs), or Treasury bills, are short-term zero-coupon government securities issued by the Republic of Angola through MINFIN (Ministry of Finance). They are the most liquid instruments in Angola’s capital markets and the primary tool for short-term government financing and monetary policy implementation by the Banco Nacional de Angola (BNA). BTs are traded on the BODIVA exchange and constitute the foundation of Angola’s debt capital markets.
Instrument Characteristics
| Feature | Detail |
|---|---|
| Issuer | Republic of Angola (MINFIN) |
| Currency | Angolan kwanza (AOA) |
| Maturities | 91 days, 182 days, 364 days |
| Coupon | Zero-coupon (issued at discount) |
| Auction frequency | Weekly or bi-weekly |
| Trading venue | BODIVA secondary market |
| Settlement | T+0 or T+1 |
| Custody | CEVAMA (central securities depository) |
| Minimum denomination | Varies by auction |
BTs are issued at a discount to face value and redeemed at par at maturity. The difference between the purchase price and the par value represents the investor’s return. This zero-coupon structure makes BTs straightforward pricing instruments and natural benchmarks for the short end of the Angolan yield curve.
Market Dynamics
BTs are the anchor of Angola’s fixed-income market. Key dynamics include:
- Primary market: MINFIN conducts regular auctions through BNA, with commercial banks serving as primary dealers. Auction results — including accepted yields and bid-to-cover ratios — are key signals for the market.
- Secondary market: BTs trade on BODIVA’s secondary market, though liquidity is concentrated in the 91-day and 364-day tenors. Secondary market turnover has been growing as the exchange develops its trading infrastructure.
- Yield levels: BT yields are closely linked to the BNA policy rate (currently 17.5%), with market rates incorporating credit, liquidity, and inflation premiums above the reference rate. With inflation at 15.7% (December 2025, INE), real yields on BTs are modestly positive.
Role in Monetary Policy
The BNA uses BT operations as a core monetary policy tool:
- Open market operations: The BNA buys and sells BTs to manage banking system liquidity, influencing the overnight and interbank lending rates.
- Standing facilities: BTs serve as eligible collateral for the BNA’s lending and deposit facilities.
- Monetary policy transmission: BT yields transmit the policy rate signal to the broader economy, influencing bank lending rates and deposit pricing.
Investor Access
BTs are accessible to multiple investor categories:
- Commercial banks: The primary holders, using BTs for liquidity management, regulatory reserve compliance, and investment portfolios
- Institutional investors: Insurance companies (including ENSA), pension funds, and collective investment schemes hold BTs as core fixed-income allocations
- Retail investors: Through the Portal do Investidor, individuals can purchase BTs directly, though retail participation remains modest relative to institutional holdings
Investor Considerations
For investors, BTs offer the lowest credit risk in the Angolan domestic market (sovereign risk at S&P B- / Moody’s B3 / Fitch B-) and the highest liquidity. Key considerations include:
- Reinvestment risk: Short maturities require frequent rollover decisions, with yields subject to change at each auction
- Currency risk: BTs are kwanza-denominated; foreign investors bear USD/AOA exposure (rate at 914.60)
- Inflation dynamics: At 15.7% inflation, the real return on BTs depends on the spread between nominal yields and CPI
- Tax treatment: BTs are subject to the Imposto sobre a Aplicação de Capitais (IAC), administered by AGT, though certain exemptions may apply
BTs should be analyzed alongside longer-duration instruments including OTNR (fixed-rate bonds) and OTX (FX-indexed bonds) to construct a complete view of Angola’s sovereign yield curve.