Angola has extended an existing US$1 billion debt facility with JPMorgan, securing access to an additional US$500 million in financing under a new three-year agreement, the finance ministry said on Tuesday.
The facility, structured as a derivative contract known as a Total Return Swap, now carries an interest rate of âwithin 8 percent,â the ministry told Reuters, without providing further details on pricing or drawdown conditions.
Angola and JPMorgan first agreed the one-year facility in 2024 as the oil-producing country sought to bolster liquidity and smooth its external financing needs amid volatile global markets and elevated borrowing costs for frontier economies.
The extension reflects improving investor confidence in Angolaâs credit profile following years of fiscal consolidation, debt reprofiling and stronger oil revenues. The government has prioritised reducing refinancing risks while maintaining access to international capital markets without issuing new Eurobonds at high yields.
Angola remains one of sub-Saharan Africaâs largest oil producers, and crude exports continue to underpin state revenues and foreign-exchange inflows. However, the country has faced persistent pressure from high debt servicing costs and exposure to swings in global oil prices.
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The finance ministry has said it is pursuing a cautious borrowing strategy, relying more on structured finance, bilateral lending and multilateral support rather than large-scale market issuance. Authorities have also pointed to improving macroeconomic indicators, including a stronger kwanza, easing inflation and narrowing fiscal deficits.
Total Return Swap facilities allow governments to access financing while using future oil revenues or other assets as reference instruments, without immediately increasing headline public debt. Such structures have become increasingly common among African commodity exporters navigating tighter global financial conditions.
The JPMorgan deal comes as several African sovereigns seek to restore market access after years of elevated yields triggered by rising global interest rates and domestic fiscal pressures.
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Angola has previously said it aims to gradually return to international bond markets once conditions become more favourable, while continuing to prioritise debt sustainability and economic diversification.
JPMorgan declined to comment on the transaction.
