Angola has extended a major JPMorgan debt deal, easing financing pressure while avoiding costly Eurobond borrowing amid volatile markets.
Angola has extended a $1 billion debt facility with JPMorgan for three years and secured an additional $500 million in financing, the finance ministry said. The new agreement carries an interest rate below 8%, compared to just under 9% on the original one-year deal signed in 2024.
The arrangement is structured as a Total Return Swap and is backed by $1.9 billion in Angolan government bonds used as collateral. Earlier this year, Angola faced a $200 million margin call after bond prices fell, but later recovered the collateral as markets rebounded.
Bond prices rose after the announcement, with Angola’s 2048 bond trading higher. Officials said the deal helped Angola avoid issuing Eurobonds when borrowing costs were high. With debt at 70% of GDP, Angola plans to issue new 7- and 10-year domestic bonds in local and foreign currencies. Other African countries, including Gabon and Senegal, have used similar off-market debt deals.
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