Angola has issued $2.5 billion in sovereign debt through two new Eurobond tranches, marking one of its largest single-day transactions in international markets and signaling renewed investor confidence despite a volatile global backdrop.
According to the Ministry of Finance, the government placed $1.5 billion in seven-year bonds at an interest rate of 9.375%, alongside a second tranche of $1 billion with an 11-year maturity at 9.875%. These represent the country’s ninth and tenth Eurobond issuances since it first tapped international markets in 2015.
Investor appetite proved robust, with the order book reaching approximately $5.2 billion—more than double the initial target of $2 billion. The strong demand allowed authorities to increase the final issuance size to $2.5 billion.
Speaking in Luanda after a Council of Ministers meeting chaired by President João Lourenço, State Minister for Economic Coordination José de Lima Massano described the transaction as both strategic and timely.
“This was an important issuance for several reasons, notably because it was the first by emerging markets following the outbreak of conflict in the Middle East,” he said, highlighting the challenging global environment marked by uncertainty and market volatility.
Massano emphasized that the operation exceeded expectations and reflected strong international confidence in Angola’s economic trajectory. “We went to the markets aiming to mobilize $2 billion, but demand reached around $5.2 billion, allowing us to secure $2.5 billion,” he noted.
The funds will support the implementation of Angola’s 2026 State Budget, financing a range of government programs and initiatives.
Since launching its Eurobond program in 2015, Angola has raised a total of $13.5 billion through this instrument. Interest rates across issuances have ranged from a low of 8.0% to as high as 10.125%, underscoring both market conditions and perceptions of risk over time.
Eurobond investors have now become Angola’s largest external creditors, surpassing institutions such as the China Development Bank. This shift reflects the government’s strategy of accelerating repayments to Chinese lenders, whose loans are often backed by oil shipments.
Massano also described the latest issuance as historic, noting that it ranks among the largest ever by a sub-Saharan African country in a single day—surpassed only by deals from South Africa and Nigeria.
He added that the operation contributes to improving Angola’s debt profile, including helping to reduce borrowing costs compared to previous issuances.
The transaction attracted a broad base of international investors, particularly from the United Kingdom and the United States, further reinforcing Angola’s access to global capital markets at a time when many emerging economies face tightening financial conditions.
