Angola has reached an agreement in principle with JPMorgan Chase & Co. to roll over a $1 billion loan scheduled to mature at the end of 2025, Okay News reports that this confirmation was issued by the country’s Ministry of Finance on Wednesday.
According to the ministry, discussions are ongoing to finalise the terms of the Angola JPMorgan loan rollover, including the proposed maturity extension, applicable interest rates, and the specific state assets that may be pledged as collateral for the renewed financing structure. Officials noted that the revised terms aim to strengthen Angola’s ability to manage its external borrowing obligations more sustainably.
The original total-return swap arrangement, backed by nearly $2 billion in Angolan sovereign bonds, was signed in December 2024. Under the agreement, Angola accessed a $1 billion facility at an annual interest rate of roughly 9%, according to Bloomberg. With global financial conditions gradually easing, authorities believe the environment is more favourable for negotiating adjustments tied to the Angola JPMorgan loan rollover.
Over recent months, yields on Angola’s sovereign bonds have declined from record highs, improving investor sentiment toward the country’s debt instruments. Angola’s 2032 eurobonds now yield just under 10%, down from almost 15% in April. This easing has strengthened the government’s confidence as it works to secure the Angola JPMorgan loan rollover under more flexible conditions.
Angola also returned to international markets in October, issuing $1.75 billion across five-year and ten-year eurobond tranches. Officials say the successful issuance provides additional fiscal breathing room and supports broader debt-management strategies connected to the Angola JPMorgan loan rollover.
The JPMorgan arrangement drew scrutiny in April after Angola was required to post an additional $200 million in collateral following a margin call triggered by falling oil prices. Although the funds were later released in May, the episode underscored the volatility associated with external borrowing and highlighted why the Angola JPMorgan loan rollover remains central to Angola’s near-term financial stability.
The IMF recently warned that Angola faces elevated refinancing pressures due to significant upcoming external debt maturities, reinforcing the importance of finalising the Angola JPMorgan loan rollover to stabilise the country’s debt profile and safeguard its fiscal outlook.
