Angola will roll over a $1 billion debt facility with JPMorgan that is nearing maturity, a senior official at the finance ministry told Reuters on Tuesday.
The official said the country plans to lower the interest rate on the facility during the rollover, without providing further details.
While the original rate was not disclosed, the finance ministry said in May it was just below 9%, as seen on Reuters.
Don’t Miss This:
The debt stems from a $1 billion, one-year derivative contract known as a total return swap, agreed almost a year ago between Angola and JPMorgan and backed by $1.9 billion in Angolan government dollar bonds.
In April, the bank demanded $200 million in additional security after the value of the bonds used as collateral fell following steep U.S. tariffs on Angola.
The bonds have since recovered, and the government regained the additional security. Market participants reported that the bond was quoted at 99.8 cents on the dollar on Tuesday.
Don’t Miss This:
Angola Recovers $200 Million Collateral From JPMorgan After Bond Prices Rebound
Image Credit: Hampshire Flag Company Ltd
