Sonangol takes out US$152 million loan in local currency to expand distribution network

12 September 2006

Lisbon, Portugal, 12 Sept – Angolan state oil company Sonanagol is to take out a loan from a Portuguese-Angolan banking syndicate totaling 12 billion kwanzas (US$152 million) in order to invest in expanding its fuel distribution network and other infrastructures in Angola, Portuguese daily Diário de Notícias reported.

Tavares Moreira, a consultant at Banco Africano de Investimento, a financial institution in which Sonangol has a stake and which is leading the operation, told the paper that three Portuguese-owned financial groups were part of the consortium – Banco Fomento Angola, owned by BPI, Millennium Angola and Banco Totta Angola.

Angolan banks Banco Poupança e Crédito, the country’s largest retail bank, and Banco Sol are also part of the syndicate, according to Moreira.

The loan is being offered at a rate of interest indexed to Central Bank bonds over six months with a spread of around 6 percentage points.

According to Moreira, this would be one of the largest loans ever granted in the Angolan currency, which has been possible due to the recent stability of the kwanza thanks to the country’s economic growth based on oil price rises.

This year, Sonangol has had a daily production rate of 100,000 barrels of oil per day, which is a record for the company.

The Sonangol Group also includes Sonaship, SonAir, Essa, Sonangol Limited, Sonangol Usa, Sonangol Asia, Sonangol Cabo Verde, as well as Sonangol São Tomé e Príncipe. (macauhub)