Latest news with #collateral
Zawya
07-08-2025
- Business
- Zawya
Angola gets back $200mln collateral from JPMorgan after bond rebound
LUANDA - Angola got back $200 million of collateral in May that it had to post to JPMorgan earlier in the year, the finance ministry said, after the price of its bond rebounded, easing pressure on its finances. JPMorgan and Angola agreed in December a $1 billion, one-year derivative contract known as a total return swap backed by $1.9 billion in its government dollar bonds. In early April, JPMorgan demanded extra security from the Southern African crude oil exporter after a sharp oil price decline in the wake of tariff turmoil hit the value of Angolan bonds provided as collateral. "The improvement in the price of Angola's Eurobonds has a positive impact, allowing the amount paid in compliance with the margin call to be returned to the State. This refund has already taken place," the finance ministry told Reuters, adding that it received the cash in May. JPMorgan declined to comment. The price of the collateral bond for the loan from JPMorgan fell from 100 cents on the dollar at the end of March to a low of 86 cents during the selloff in early April when the margin call was invoked, before recovering to the March levels. It was quoted at 100 cents on Wednesday, traders said. Angola, which is saddled with high external debt to various creditors, including oil-backed loans from China, faces a slowing growth outlook and violent protests sparked by a fuel price hike on the back of removal of oil subsidies. COMPLEX INSTRUMENTS The total return swap deal with JPMorgan saw the Wall Street bank provide the government with two financing tranches of $600 million and $400 million. The $1.9 billion freshly issued bonds that provide collateral for the deal did not generate any cash for the country. The bond, which will mature in 2030, is listed internationally and its price is usually quoted in line with movements in the broader market and Angola's other bonds. Total return swaps are seen as complex and risky financing instruments, and are very rarely used in sovereign funding. Angola's JPMorgan total return swap has added to concerns that heavily indebted, low-rated African countries are increasingly turning to "off-screen" transactions like bank loans, private placements and derivatives which could bring challenges including margin calls and higher interest rates. Africa's debt has soared to more than $1.8 trillion, according to data from the African Development Bank, leading to three sovereign debt defaults in the past four years and unconventional financing deals as governments seek to stay afloat. In Angola, concerns have been growing about falling social spending by the state amid demands for more investments into infrastructure projects like roads. The International Monetary Fund cut Angola's preliminary growth outlook for 2025 to 2.4% from an initial 3%, citing lower crude oil prices and tighter external financing conditions.
Bloomberg
07-08-2025
- Business
- Bloomberg
Angola Says It Got Back $200 Million Collateral From JPMorgan
Angola's government got back $200 million from JPMorgan Chase & Co. that it used as additional collateral for a loan from the US lender, the finance ministry said. The oil-producing southern African nation in December and January issued about $2 billion of bonds as collateral for a $1 billion loan from JPMorgan. In April, JPMorgan asked for an additional $200 million in security after a decline in crude prices cut the value of the Angolan debt.
Yahoo
07-08-2025
- Business
- Yahoo
Exclusive-Angola gets back $200 million collateral from JPMorgan after bond rebound
By Duncan Miriri LUANDA (Reuters) -Angola got back $200 million of collateral in May that it had to post to JPMorgan earlier in the year, the finance ministry said, after the price of its bond rebounded, easing pressure on its finances. JPMorgan and Angola agreed in December a $1 billion, one-year derivative contract known as a total return swap backed by $1.9 billion in its government dollar bonds. In early April, JPMorgan demanded extra security from the Southern African crude oil exporter after a sharp oil price decline in the wake of tariff turmoil hit the value of Angolan bonds provided as collateral. "The improvement in the price of Angola's Eurobonds has a positive impact, allowing the amount paid in compliance with the margin call to be returned to the State. This refund has already taken place," the finance ministry told Reuters, adding that it received the cash in May. JPMorgan declined to comment. The price of the collateral bond for the loan from JPMorgan fell from 100 cents on the dollar at the end of March to a low of 86 cents during the selloff in early April when the margin call was invoked, before recovering to the March levels. It was quoted at 100 cents on Wednesday, traders said. Angola, which is saddled with high external debt to various creditors, including oil-backed loans from China, faces a slowing growth outlook and violent protests sparked by a fuel price hike on the back of removal of oil subsidies. COMPLEX INSTRUMENTS The total return swap deal with JPMorgan saw the Wall Street bank provide the government with two financing tranches of $600 million and $400 million. The $1.9 billion freshly issued bonds that provide collateral for the deal did not generate any cash for the country. The bond, which will mature in 2030, is listed internationally and its price is usually quoted in line with movements in the broader market and Angola's other bonds. Total return swaps are seen as complex and risky financing instruments, and are very rarely used in sovereign funding. Angola's JPMorgan total return swap has added to concerns that heavily indebted, low-rated African countries are increasingly turning to "off-screen" transactions like bank loans, private placements and derivatives which could bring challenges including margin calls and higher interest rates. Africa's debt has soared to more than $1.8 trillion, according to data from the African Development Bank, leading to three sovereign debt defaults in the past four years and unconventional financing deals as governments seek to stay afloat. In Angola, concerns have been growing about falling social spending by the state amid demands for more investments into infrastructure projects like roads. The International Monetary Fund cut Angola's preliminary growth outlook for 2025 to 2.4% from an initial 3%, citing lower crude oil prices and tighter external financing conditions. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
07-08-2025
- Business
- Reuters
Exclusive: Angola gets back $200 million collateral from JPMorgan after bond rebound
LUANDA, Aug 7 (Reuters) - Angola got back $200 million of collateral in May that it had to post to JPMorgan (JPM.N), opens new tab earlier in the year, the finance ministry said, after the price of its bond rebounded, easing pressure on its finances. JPMorgan and Angola agreed in December a $1 billion, one-year derivative contract known as a total return swap backed by $1.9 billion in its government dollar bonds. In early April, JPMorgan demanded extra security from the Southern African crude oil exporter after a sharp oil price decline in the wake of tariff turmoil hit the value of Angolan bonds provided as collateral. "The improvement in the price of Angola's Eurobonds has a positive impact, allowing the amount paid in compliance with the margin call to be returned to the State. This refund has already taken place," the finance ministry told Reuters, adding that it received the cash in May. JPMorgan declined to comment. The price of the collateral bond for the loan from JPMorgan fell from 100 cents on the dollar at the end of March to a low of 86 cents during the selloff in early April when the margin call was invoked, before recovering to the March levels. It was quoted at 100 cents on Wednesday, traders said. Angola, which is saddled with high external debt to various creditors, including oil-backed loans from China, faces a slowing growth outlook and violent protests sparked by a fuel price hike on the back of removal of oil subsidies. The total return swap deal with JPMorgan saw the Wall Street bank provide the government with two financing tranches of $600 million and $400 million. The $1.9 billion freshly issued bonds that provide collateral for the deal did not generate any cash for the country. The bond, which will mature in 2030, is listed internationally and its price is usually quoted in line with movements in the broader market and Angola's other bonds. Total return swaps are seen as complex and risky financing instruments, and are very rarely used in sovereign funding. Angola's JPMorgan total return swap has added to concerns that heavily indebted, low-rated African countries are increasingly turning to "off-screen" transactions like bank loans, private placements and derivatives which could bring challenges including margin calls and higher interest rates. Africa's debt has soared to more than $1.8 trillion, according to data from the African Development Bank, leading to three sovereign debt defaults in the past four years and unconventional financing deals as governments seek to stay afloat. In Angola, concerns have been growing about falling social spending by the state amid demands for more investments into infrastructure projects like roads. The International Monetary Fund cut Angola's preliminary growth outlook for 2025 to 2.4% from an initial 3%, citing lower crude oil prices and tighter external financing conditions.
Yahoo
05-08-2025
- Business
- Yahoo
Salem Media Group Enters into a Third Amendment to Loan and Security Agreement, dated as of July 28, 2025
CAMARILLO, Calif., August 05, 2025--(BUSINESS WIRE)--Salem Media Group, Inc. (OTCQX: SALM) announced today that the company and certain of its subsidiaries entered into a Third Amendment to Loan and Security Agreement, dated as of July 28, 2025 (the "Amendment") with Siena Lending Group LLC. The Amendment amends the Loan and Security Agreement, dated as of December 26, 2023 (as amended, supplemented or otherwise modified, including pursuant to the Amendment, the "Loan Agreement"), by and among Salem Media Group, Inc. and certain of its subsidiaries as borrowers and Siena Lending Group LLC as the lender. The Amendment, among other things, adds additional real property owned by Salem Radio Properties, Inc. to the collateral under the Loan Agreement, which increases the borrowing base and therefore the amount that the company may borrow under the Loan Agreement. About Salem Media Group Salem Media Group is America's premier multimedia company specializing in Christian and conservative content. Through its national radio network, digital platforms, and publishing brands, Salem reaches millions daily with powerful content that drives the national conversation. Learn more at View source version on Contacts Company Contact:Sara BroadwaterPublicity@ Sign in to access your portfolio
