Angola: Sonangol and CGD’s bank reduces capital by half

5 June 2009

Lisbon, Portugal, 5 June – The investment bank created by Portuguese bank Caixa Geral de Depósitos (CGD) and Angolan oil company Sonangol will be launched at the end of the year with starting capital of half of that initially outlined, said CGD’s chairman in Lisbon.

Speaking to financial daily Jornal de Negócios, Fernando Faria de Oliveira said that of the 800 million euros of total estimated investment for this project, just 50 percent would be injected initially, and the remaining 400 million would be invested based on the project’s progress.

“It is not necessary to invest all the capital at the launch. We will start with 50 percent and the rest will be injected as the business develops,” Oliveira said.

The two partners are currently working with the AT Kearney consultancy to structure the new financial institution, the aim of which is to fund investment projects in Angola.

“By the end of the year we expect to have everything in place,” including authorisation from Angola’s central bank, said CGD’s chairman noting that, “the party most interested in this project is the Angolan authorities.” (macauhub)