Angola Reaches Agreement with JPMorgan to Extend $1 Billion Loan as Eurobond Yields Fall
Angola has reached an agreement in principle with JPMorgan Chase & Co. to roll over a $1 billion loan that was set to mature at the end of this year, the country’s finance ministry announced.
Details of the renewed arrangement—including maturity, interest rate, and collateral—are still being finalized, a ministry spokesperson said.
The original loan, signed in December, was structured as a total-return swap with nearly $2 billion of Angola’s dollar bonds used as collateral. The loan carries an annual interest rate of approximately 9%.
The government’s decision comes as yields on Angola’s dollar-denominated bonds have declined from record highs, improving its capacity to negotiate better terms or access international markets. Angola’s 2032 eurobonds now yield just under 10%, down from nearly 15% in April.
Africa’s third-largest oil producer returned to global debt markets last month, raising $1.75 billion through its first eurobond issuance since 2021. The issuance included five- and ten-year tranches priced at 9.25% and 10.125%, respectively.
The JPMorgan loan had drawn attention in April when Angola was required to post an additional $200 million in collateral following a margin call triggered by falling oil prices and declining sovereign bond values. These funds were returned in May.
Angola’s public debt stands at roughly 55% of GDP, below the 60% ceiling mandated by its fiscal sustainability law, according to Secretary of State for Finance and Treasury Ottoniel dos Santos.
However, the IMF warned in September that the country faces near-term financing pressures due to large external debt maturities.
