Angola says JPMorgan debt extension included $200 mln collateral cut

LUANDA, Jan 27 (Reuters) - Angola's extension of a $1 billion debt facility with JPMorgan JPM.N included the partial replacement of the collateral bond with a higher-rated one, resulting in a reduction of the collateral by $200 million, the finance ministry said.

The Southern African nation said earlier this month it had agreed with JPMorgan a three-year extension of the initial one-year derivative contract, known as a Total Return Swap, and secured an extra $500 million in financing. The lender did not respond immediately to a request for comment.

The partial replacement of the collateral with a higher-rated bond cut the collateral amount to $1.7 billion, from the initial $1.9 billion, the ministry told Reuters on Tuesday.

The derivative contract between Angola and JPMorgan, which included a $200 million margin call after a U.S. trade tariff-induced global selloff last April, exposed the high costs of new financing avenues that heavily indebted African nations have been turning to.