Angola has secured an additional $500 million in funding after extending an existing $1 billion debt facility with JPMorgan for another three years, according to a statement released on Tuesday by the country’s finance ministry.
The extension comes as Africa’s second-largest oil producer works to manage its external financing requirements while tightening debt discipline amid volatile global capital markets and changing investor sentiment toward emerging and frontier economies.
Under the revised terms, the facility now carries an interest rate below eight percent, replacing the one-year structure agreed with the U.S. banking giant in 2024. The original deal was structured as a total return swap, a derivative arrangement that enabled Angola to raise funds while using its sovereign bonds as collateral.
Through that initial agreement, JPMorgan provided financing backed by roughly $1.9 billion worth of Angolan sovereign bonds, allowing the government to access liquidity without tapping traditional international debt markets directly.
Market reaction to the extension was positive, with Angolan bonds gaining on the news. The country’s 2048 bond maturity rose by about one cent to trade at 86.97 cents on the dollar, reflecting improved investor confidence after a turbulent start to the year.
The risks associated with the structure, however, were highlighted in April when JPMorgan issued a $200 million margin call following a sharp decline in Angolan bond prices. The drop was triggered by global market disruptions linked to sweeping U.S. trade tariffs. As bond prices later recovered, the Angolan government regained the additional collateral, easing pressure on the facility and restoring its original balance.
The episode underscored both the flexibility and exposure associated with derivative-based financing, particularly for frontier market borrowers during periods of heightened global stress.
By extending the facility and increasing available funding, Angola is gaining longer-term financial breathing space while avoiding an immediate return to the international bond market. The move also signals renewed confidence from JPMorgan following the rebound in the country’s sovereign debt prices.
The financing boost comes as Angola continues to balance fiscal stability with the need to support economic activity, amid fluctuating oil prices and tighter global financial conditions.
