Africa’s third-largest oil producer to sell $2.5 billion of Eurobonds as oil surges

Angola is set to raise $2.5 billion through the sale of dollar-denominated bonds, betting that higher oil prices driven by the Iran–Israel conflict will attract strong investor demand.

Africa’s third-largest oil producer is offering $1.5 billion in seven-year bonds at a yield of 9.375% and $1 billion in 11-year bonds at 9.875%, according to a person familiar with the matter. Both yields are about a quarter-point tighter than the initial price guidance.

Orders reportedly peaked at more than $5.2 billion, showing strong investor appetite.

Proceeds from the bond sale will partially fund Angola’s offer to repurchase 8.25% notes due in 2028, although the country is not obligated to purchase any of the tendered bonds.

The deal comes as Angola seeks to capitalise on renewed demand for resource-linked assets. Disruptions to oil supply chains caused by the US–Israel–Iran conflict have pushed global crude prices higher, making producers outside the Middle East, like Angola, more attractive to investors.

This follows a previous dollar bond issuance in October, when Angola raised $1.75 billion. The new sale, however, comes amid rising borrowing costs that have challenged many emerging-market issuers.