Angolan bioenergy company takes on loan with State guarantee

10 November 2015

Angolan bioenergy company, Companhia de Bioenergia de Angola (Biocom) is this month due to sign a contract with a syndicate of Angolan banks for a loan of US$210 million that has a State guarantee, the financial director of the company told Angolan weekly newspaper Expansão.

“From 2016, the resources generated by the operation should ensure sufficient funds to invest in increased production capacity and the sale of sugar, ethanol and electricity from biomass,”said director António Pereira.

The presidential decree granting the sovereign guarantee for 100 percent of the funding was published on 6 October in the Official Gazette (Diário da República) and “clarified” some aspects that “generated doubts” in a statute issued in September, said the official.

This diploma gave a 70 percent guarantee on a loan of US$300 million, and now there is a guarantee on the full US$210 million, said Pereira, noting that the remaining US$90 million would be guaranteed by the shareholders.

The company’s shareholders are Brazilian group Odebrecht, with 40 percent of the capital, Angolan group Cochan, founded by entrepreneur Leopoldino Fragoso do Nascimento, also with 40 percent and Angolan state oil company Sonangol with the remaining 20 percent.

Biocom is installed in the Capanda Agro.Industrial Hub, in Cascuso district, in an area of ​​42,500 hectares, of which 36,921 are agricultural land and 5,579 are intended for permanent areas for preservation of native vegetation, according to the company’s website.

Biocom’s sugar production is intended for the domestic market and power production will be sold to Angolan electricity company Empresa Nacional de Electricidade and anhydrous ethanol will be provided to Sonangol. (macauhub/AO)