Angola’s Sonangol holdings negotiates US$1 billion loan

5 July 2011

Luanda, Angola, 5 July – Sonangol Holdings is negotiating with international banks for a syndicated loan worth US$1 billion, Angolan weekly newspaper Expansão reported.

The weekly newspaper cited financial news agency Bloomberg as saying that Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB, formerly Calyon) and Standard Chartered were the banks that would head the syndicate, which includes 12 banks and will have a guarantee from state company Sociedade Nacional de Petróleos de Angola (Sonangol).

The loan has a maturity of 10 years and an interest rate of 325 basis points over Libor (London Interbank Offered Rate) and payments are due to begin at the end of the year.

The newspaper noted that the loan coincides with some changes in the oil industry, specifically the fact that Exxon Mobil, known in Angola as Esso Exploration, plans to sell the 25 percent stake it owns in Block 31.

Several international groups have announced proposals of billions of dollars for the stake, including India’s ONGC, and Indonesia’s Pertamina.

Sonangol Holdings is a subsidiary of Sonangol that was set up in 2004 with the aim of developing commercial and industrial activities, managing a portfolio of shares and providing technical and administrative services to specific companies. (macauhub)