Angola to decide on $1 billion JPMorgan deal by November, finance official says

Core Viewpoint - Angola is evaluating options regarding its $1 billion total return swap deal with JPMorgan, with a decision expected by November on whether to roll over the deal or seek funds from international capital markets [1][2]. Group 1: Financial Arrangement - The total return swap deal, established in December, is a one-year derivative contract backed by $1.9 billion in government dollar bonds, set to expire at the end of this year [1]. - Angola's finance ministry is considering various options, including issuing debt to raise funds, partially repaying, or extending the current arrangement, depending on market conditions [2][3]. - The current cost of the JPMorgan facility is lower than Angola's Eurobonds, leading to a preference for extending the deal if feasible [3]. Group 2: Debt Management - Angola is facing a repayment of over $860 million on a dollar-denominated bond sold in 2015 in November [5]. - The yield on Angola's international bonds is approximately 10%, with the country seeking a better deal than the current 9% on the total return swap [3][4]. - The finance ministry is enhancing transparency by issuing debt statistics more regularly, with plans to publish monthly reports starting next year [5][6]. Group 3: Market Conditions - The perception of risk associated with Angola has increased due to insufficient communication, prompting efforts to provide more information to potentially lower borrowing costs [6]. - Finance officials are advocating for a conservative oil price assumption in the 2026 budget, following a stress test of the 2025 spending due to lower oil prices [7].