Angola Returns to International Markets with $1.5 Billion Eurobond

Angola is making its first return to international bond markets in three years, and is looking at raising $1.5 billion through a dual-tranche U.S. dollar Eurobond, according to the Ministry of Finance.

The southern African nation plans to issue two sets of bonds: five-year notes maturing in January 2031 and ten-year notes maturing in October 2035. Initial pricing guidance puts yields at approximately 9.75% and 10.50%, respectively.

This issuance is part of Angola’s 2025 financing strategy, which targets $6 billion in debt issuance to help cover the country’s total funding requirement of $14.9 billion.

Angola faces immediate financial obligations, including an $864 million bond repayment due in November and the expiration of a $1 billion total return swap agreement with JPMorgan in December. Citi, Deutsche Bank, JPMorgan, and Standard Chartered are acting as joint lead managers for the transaction.

As of Tuesday last week, Angola’s 2032 Eurobond was yielding 9.86%—near its lowest level since February 2023—indicating favorable market conditions.

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The new Eurobond deal marks a significant comeback for African sovereign issuers, buoyed by improving global borrowing conditions.

According to the JPMorgan Africa NexGem Index, African debt spreads are now at their tightest levels since 2019, reflecting increased investor confidence in countries pursuing fiscal reforms and receiving credit rating upgrades.

The issuance will serve as a key test of investor sentiment following several years of economic stabilization under President João Lourenço.

His administration has implemented IMF-backed fiscal discipline, subsidy reductions, and debt restructuring initiatives.

The deal also paints a clear picture of resurgence in demand for frontier-market debt, as global interest rates ease and investors seek higher-yielding assets. With Nigeria, the Democratic Republic of Congo, and Sou