Angola is set to raise $2.5 billion from the international debt market through a new Eurobond issuance, taking advantage of rising oil prices and strong investor appetite for resource-backed economies.

The country is offering two dollar-denominated bonds: a $1.5 billion seven-year note priced to yield 9.375% and a $1 billion 11-year note at 9.875%. Strong demand from investors pushed pricing tighter than initial guidance, with total orders reportedly exceeding $5.2 billion more than double the original $2 billion target.

The improved sentiment comes as crude oil prices climb amid geopolitical tensions involving Iran and Israel, which have raised concerns over global supply. This has made oil exporters outside the Middle East, including Angola, more attractive to investors seeking higher yields.

Part of the proceeds from the bond sale will go toward a planned buyback of Angola’s 8.25% notes due in 2028, although the government is not obligated to purchase all the bonds offered in the tender.

The new issuance follows a $1.75 billion dollar bond sale completed in October last year. Despite a tougher environment for emerging market borrowers due to higher global interest rates, the strong subscription level signals continued investor confidence in Angola’s oil-driven revenue outlook.

The transaction allows Angola to refinance some of its existing debt while securing longer-term funding under favourable commodity market conditions.