China Development Bank grants loan to Angola’s Sonangol

15 December 2014

The China Development Bank will provide a loan of US$2 billion to Angola’s national oil company Sonangol, and the loan contract was signed in Beijing, Sonangol said in a statement issued in Luanda.

Sonangol also said this loan may be followed by other “long-term financing,” taking into account the future plans of the oil company, which include construction of the Lobito refinery, a project due to start in 2015.

The Angolan state company noted in the statement that the China Development Bank is the largest financial institution in China, in terms of foreign cooperation and particularly with regard to granting loans.

Funding from the China Development Bank to Angola’s economy began in 2008, and Sonangol noted that funding from the bank “has allowed for execution of large projects in crude oil exploration, refining and logistics.”

Angola is the second-largest oil producer in sub-Saharan Africa, after Nigeria, and in 2013 oil accounted for 76 percent of the country’s revenues. (macauhub/AO/CN)