The State spent 1.04 billion dollars on amortizations in a period in which bond exchange operations reached 0.65 billion dollars
Issuances of Treasury Bonds in National Currency (OT-MN) totaled, in the period from January to March 2023, around 964.82 billion kwanzas, equivalent to 1.911 billion dollars. Of these amounts, 616.12 billion kwanzas, more than 1.22 billion dollars, result from issues made at auction and through the investor portal, according to data to which OPAÍS had access from the Debt Management Unit (UGD), an institution under the Ministry of Finance.
The UGD indicates, on the other hand, 325 billion kwanzas, around 0.65 billion dollars, which were related to securities exchange operations, while another 23 billion kwanzas were related to the acquisition of assets.
According to the data, all issues were carried out through OT-MN, securities without any index and with coupon interest varying, depending on maturity, between 14.50% and 17.00% per year. The data indicates that the structure in terms of maturity of OT-MN issues, which took place from January to March 2023, was composed of bonds ranging from 2 to 10 years.
On the other hand, the quantities offered complied with the criteria of public debt sustainability and promotion of the securities market.
USD 1.71 billion for debt
With regard to debt service, data indicate that services relating to OT-MN reached a value of 859.66 billion kwanzas from January to March, around 1.71 billion dollars. Of these amounts, 525.07 billion kwanzas, equivalent to US$1.04 billion, corresponded to amortizations, while 334 billion kwanzas, more than US$0.66 billion, corresponded to coupon interest payments.
Here it is important to mention that the new Minister of State for Economic Coordination, José de Lima Massano, said that he will no longer resort to issuing Eurobonds, that is, international bonds. Eurobonds are all bonds issued in a market whose bond currency is different from the currency of the issuing market, in this case the kwanza.
BY: Ladislau Francisco
