Angola: BAI and BESA secure 80 pct of state financing operation

1 November 2007

Luanda, Angola, 1 Nov – Angola’s Banco Africano de Investimento (BAI) and Espírito Santo Angola (BESA) are to provide 80 percent of the new financing operation for the Angolan state, the chairman of the BESA executive commission, Álvaro Sobrinho said Wednesday in Luanda.

Other financial institutions in the Angolan market will take on the remaining 20 percent of the operation, which will provide the state with US$3.5 billion, to be applied to the countries infrastructure reconstruction projects.

Sobrinho, who was speaking to the press Wednesday at the signing of a finance agreement between the Finance Ministry and Angolan retail banks, the first tranche of the loan – US$1 billion – will be provided this year and the repayment period will be five years.

The second tranche of US$1.5 billion will be provided in 2008 and the third, of US$1 billion, will be available in 2009 and the repayment period will be 9 years.

The operation for this funding, Sobrinho said, was spread over three years so that the banks could plan their liquidity ratios.

The funding is guaranteed by the issuing of Treasury Bonds, recently authorized by the Council of Ministers.

So far, the Angolan Government has only used banks three time to set up a syndicate for financing. The first was for the acquisition of new Boeing aircraft for airline Taag, and the second was to finance the second phase of the Nova Vida project.

The third financing operation took place last March with the state obtaining US$400 million for construction of roads as well as power transmission line and respective sub-stations on the Capanda-Lucala-Viana route. (macauhub)