Angola’s Poupança e Crédito bank leads banking syndicate to finance housing project

12 February 2007

Luanda, Angola, 12 Feb – Angolan bank, Banco Poupança e Crédito (BPC) is to head a syndicate of Angolan retail banks to finance the second stage of the “Nova Vida” housing project, to the value of 12.6 billion kwanzas (US$157 million), the Angolan finance ministry said.

According to a statement from the ministry, cited by Angolan news agency Angop, the Angolan government has mandated BPC to act as its financial consultant on the structuring, set up and be the intermediate of the financial operation.

The amount of funding will cover the cost of infrastructures, constructions surveys and projects for building 1,862 homes, over an area of 216,000 square meters as well as land for commercial activities, totaling 271,000 square meters.

Of the total housing units, 372, or 20 percent of the total, will be sold to civil servants through a “rent to buy” scheme.

In its role as consultant for the finance ministry, BPC invited all financial institutions operating in the Angolan market to take part in the project.

The banks included in the syndicate will have committed to provide 80 percent of the total loan, with BPC responsible for 30 percent, as the operating agent, and 25 percent each from Banco Fomento de Angola (BFA) and Totta de Angola.

The remaining 20 percent has been subscribed by five other banks (BAI, SOL, Millenium, BPA and BRK), with BAI providing 11.8 percent.

Located in Luanda Sul, eight kilometers from central Luanda, the Nova Vida project is a government project begun in 2001, with capacity to house 20,000 people. (macauhub)