| 1 | USD INDEXED BOND

MATURITY 2020 - 2023

COSTS 1,50%

| 2 | BNI TERM DEPOSITS

6M 12M

100K - 5M

>5M - 50M

>50M - 100M

100M+

AMOUNT 1M 2M 3M

10,90%

11,40%

11,90%

12,40%

11,05%

11,55%

12,05%

12,55%

11,20%

11,70%

12,20%

12,70%

11,35%

11,85%

12,35%

12,85%

11,50%

12,00%

12,50%

13,00%

01 05 CROSS CURRENCY MATRIX

BNI: INVESTMENT OPPORTUNITIES

13th January 2020

Source: XECurrency

0602

Graphic 2 | Source: Bloomberg Source: XECurrency

MARKET ANALYSIS0703

MARKET BULLETIN

BOND MARKET04BT - Treasury Bills

BT - Treasury Bills

BT - Treasury Bills

OTX - Bonds Indexed to USD

OTX - Bonds Indexed to USD

OTX - Bonds Indexed to USD

91 DAYS

182 DAYS

364 DAYS

3 YEARS

4 YEARS

5 YEARS

16,15%

20,25%

23,90%

7,00%

7,50%

7,75%

This week, In order to ensure the timely execution of the sale of foreign currency and related operations to its clients, BNA established, by Instruction No. 01/2020 of 10 January, a maximum period of 5 working days for the execution of these operations by commercial banks. In addition, the central bank of Angola has ordered state lender Banco de Poupança e Credito (BPC) and Banco Economico (BE) to increase their capital levels to meet the minimum requirement after conducting a sector assessment. While the asset quality analysis of 13 banks showed that the "system is globally robust," most lenders need to improve their credit risk procedures, the central bank said in a statement on its website.

Global bond traders who ventured into Africa this year reaped rich rewards. The continent's dollar sovereign debt has generated total returns of 20% since early 2019, more than any other region in emerging markets (Graph 1). If the world's leading central banks remain pessimistic by 2020, it should sustain a race for higher yields in emerging markets which means that African bonds will remain in high demand.

President Donald Trump was wrong last week when he said the US does not need oil from the Middle East. US imports of Persian Gulf oil fell with the shale boom, but still averaged 875,000 barrels per day in 2019 (Graph 2).

If the mere prospect of an interruption in Persian Gulf oil flows has the power to inflate US gasoline prices (Graph 3), imagine what a real stop in imports would do. No president would want that risk during an election year. BNI - Direcção Financeira Internacional

CERTIFICAÇÃO INTERNACIONAL DE QUALIDADE

BNI - Banco de Negócios InternacionalAvenida Che-Guevara nº 42 - A, Bairro Maculusso, Distrito da Ingombota. Caixa Postal 578. Luanda - AngolaTel: (+244) 222 632 900 / (+244) 222 632 901 / Fax: (+244) 222 371 887

www.bni.ao

PASSION FOR ANGOLA.To realise, develop and participate in Angola’s growth.This is where we apply our passion. To always do better.

Graphic 1 | Source: JPMorgan Chase & Co. Index

Graphic 3 | Source: American Automobile Association

U.S RETAIL GASOLINE PRICES

RUPEPay your taxes in BNIquickly and conveniently.

RETURNS ON SOVEREIGN DOLLAR BONDS (2019)

AOA

USD

GBP

EUR

ZAR

1 00000,

0,00207

0,00159

0,00186

0,02960

484,216

1,00000

0,76897

0,89859

14,3307

629,691

1,30043

1 00000,

1,16856

18,6361

538,863

1,11286

0,85576

1,00000

15,9480

33,7888

0,06978

0,05366

0,06270

1,00000

1 AOA 1 USD 1 GBP 1 EUR 1 ZAR

US. CRUDE IMPORTS FROM THE MIDDLE EAST

Middle East Latin America EmergingAsia

EmergingMarkets

EasternEurope

Africa

20

15

10

05

0

Africa20.07%

Sep2019

Oct Nov Dec Jan2020

2.70 a barrel

2.65

2.60

2.55

2.50

Attack on Saudioil facilities

Iran vows revengefor Soleimani Killing

2.0 million barres a day

1.5

1.0

0.5

0

2013 2014 2015 2016 2017 2018 2019

from Saudi Arabia from Iraq from Kuwait from U.A.E