Angola takes on new loan of US$500 million

7 July 2015

Angola will take on a new international loan of US$500 million for energy and water projects, according to a presidential order cited by Portuguese news agency Lusa.

The document from 29 June, approving a financing agreement with Ecotech – Engineering & Technical Services for US$125 million for “budgetary support to the National Treasury” and over US$375 million “to supply materials, products and implement projects.”

The authorisation is explained by “the need to ensure execution of the projects included in the Public Investment Programme” as outlined in the State Budget (OGE) for 2015 and is in line with the “government’s strategy of diversification of funding sources.”

A few days ago the Angolan government secured a World Bank loan of US$450 million – plus a guarantee of US$200 million – and a new credit line from China, for an undisclosed amount.

Previously loans were taken out with France’s Société Générale, for US$500 million, Spain’s BBVA, for 500 million euros, and US bank Goldman Sachs and British fund Gemcorp Capital, each for US$250 million, among others. (macauhub/AO)