Angola has extended its one-year 1 billion US dollars debt facility with JPMorgan to a three-year arrangement and secured an extra 500 million US dollars in financing, the finance ministry said on Tuesday, Reuters reported.

The ministry said the new contract carries an interest rate "within 8 percent", compared with just under 9 percent on the original one-year facility agreed in 2024, under a derivative known as a Total Return Swap. JPMorgan declined to comment.

The Southern African oil producer initially posted 1.9 billion US dollars in government bonds as collateral for the deal. In April, a margin call by the bank forced Angola to post an additional 200 million US dollars in collateral after the bonds’ value fell due to U.S. trade tariffs, although the government later recouped the extra collateral as bond prices recovered.

Following the extension, Angola’s bond prices continued earlier gains, with the 2048 maturity trading 1 cent higher at 86.97 cents on the dollar. “News of a three-year transaction and an additional 500 million US dollars of financing will be well received by the market,” said Samir Gadio, head of Africa strategy at Standard Chartered in London.

Finance ministry officials said the deal allowed Angola to avoid adding Eurobond debt to its books at a time when borrowing costs were elevated. They added that investors’ perception of the country’s risk did not reflect its repayment capacity, noting that the arrangement had worked well for the government.

Several other emerging economies, including Senegal, Gabon, and Cameroon, have also pursued "off-screen" or private debt deals to manage repayments and optimise borrowing, illustrating a broader trend among low-rated issuers.

The finance ministry said on Tuesday it also planned to issue new 7- and 10-year domestic bonds denominated in both local and foreign currencies.