Angola has obtained an additional $500 million in financing, extending an existing $1 billion debt facility with JPMorgan, the country’s finance ministry announced on Tuesday.
The new three-year agreement carries an interest rate “within 8%,” according to the ministry, and builds on an initial one-year derivative contract, known as a Total Return Swap, agreed upon with JPMorgan in 2024.
JPMorgan did not immediately comment on the extension.
Angola’s bond prices responded positively to the news, trading up to one cent higher on Tuesday afternoon. The 2048 maturity bond was bid at 86.97 cents on the dollar.
The original deal was backed by $1.9 billion in Angolan government bonds issued as collateral. In April, a margin call forced Angola to post an additional $200 million in collateral after the value of those bonds fell past a trigger point amid sweeping U.S. trade tariffs, highlighting the risks associated with such derivative deals for frontier market issuers. Angola later recovered the added collateral when bond prices rebounded.
The latest agreement strengthens Angola’s financial flexibility and demonstrates ongoing collaboration between the Southern African nation and Wall Street lenders.
