Angola has recovered $200 million in collateral previously posted to JPMorgan Chase after a recovery in the value of its sovereign bonds reduced the need for additional security on a $1 billion financing deal.

The funds were returned in May, an official at the finance ministry told Reuters, offering some fiscal breathing space as the country faces rising debt service costs. JPMorgan declined to comment on the transaction.

The Southern African oil exporter had issued roughly $2 billion in bonds in December 2024 and January 2025 as part of a total return swap arrangement to raise $1 billion in funding. However, a sharp drop in global crude prices earlier this year drove the value of the bonds down to 86 cents on the dollar, prompting JPMorgan to call for $200 million in additional collateral in April, according to Reuters.

The margin call, which Angola met promptly, drew attention to the growing use of complex financing tools by emerging markets navigating limited access to traditional bond markets. Analysts said the episode highlighted the risks of using opaque structures like total return swaps, which are rare among sovereign borrowers.

Angola, Africa’s second-largest oil producer, is facing a tightening external debt schedule. It owes $864 million on a bond maturing in November and continues to allocate a significant share of its budget to debt repayments and public sector wages.

The finance ministry has not disclosed whether similar collateral arrangements remain in place. The transaction marks a rare case of a sovereign borrower managing a margin call on time and securing the return of funds within a few weeks.