Angola’s Ministry of Finance has secured a $400 million loan from U.S.-based bank JP Morgan, backed by a public debt issuance of $1.5 billion as collateral.
The economic studies office of Banco Fomento Angola (BFA) reports that the public debt issuance took place on December 27, 2024, with a maturity date of December 31, 2030, and a spread of 650.6 basis points. This debt issuance guarantees the $400 million loan and potentially supports other financing operations, according to BFA.
The bonds are trading at a yield of 4.5%, placing Angola’s debt issuance yield at approximately 11%. This aligns with current yields on Angolan debt in the secondary market but exceeds the rates of recent issuances, such as the 10-year debt issued in 2022 at 8.75%, the analysis noted.
A presidential decree (235/2024), issued on December 20 and published on January 2, authorizes the issuance of new Eurobond series in international markets. These bonds are intended to secure financing of up to $1.5 billion, equivalent to about €1.46 billion.