Angola’s national oil company, Sonangol, has successfully raised $750 million through its first-ever international bond issuance, marking a milestone in the company’s funding strategy and Angola’s re-engagement with global capital markets.

The US dollar-denominated bond, issued around January 22, 2026, is a five-year note maturing on January 29, 2031, with a two-year non-call period.

It carries a fixed 10% coupon, priced at 94.414% of par, yielding about 11.5% to investors. The bond, targeted at international institutional investors, had a minimum denomination of $200,000.

Structured as a private placement rather than a broadly syndicated Eurobond, Standard Chartered Bank served as sole arranger and bookrunner.

Despite its high yield—reflecting Angola’s sovereign risk and oil-linked exposure—the bond performed strongly in the secondary market, with rising prices soon after issuance, signaling robust investor demand and confidence.

This debut expands Sonangol’s funding toolkit beyond traditional loans, domestic instruments, and bilateral financing.

As Angola’s largest company, Sonangol underpins national oil production, exports, and fiscal revenues.

Proceeds will support operations, capital expenditure, and debt management, aligning with ongoing restructuring, governance improvements, and a focus on core upstream and downstream activities.

The bond also advances Sonangol’s long-term strategy to diversify funding sources and investors, paving the way for potential market-oriented initiatives, including an IPO of up to 30% of its capital and financing strategic infrastructure projects such as refining capacity.