Angolan government negotiates new credit facilities with China

14 May 2018

The Angolan government is negotiating “a number of new credit facilities,” some of which are in the advanced stage of negotiation, to raise US$20 billion in loans, mostly from Chinese banks, according to the prospectus of a US$3 billion Eurobond issue last week in London.

The document said the Angolan government is negotiating a credit line worth US$11.7 billion with the Industrial and Commercial Bank of China (ICBC) to finance the execution of various projects in the country, according to Portuguese news agency Lusa.

With the ICBC as the grantor, agent and creditor, the Angolan government, according to the document, is “in the process of entering into a loan agreement” of US$1.282 billion to finance up to 85% of the contract for the design, construction and supply of equipment of the New Luanda International Airport, under construction by Chinese companies on the outskirts of the capital.

Through the state-owned Chinese bank that supports imports and exports from the country (ExIm Bank), Angola is negotiating financing of US$690.2 million for the construction of the Corimba coastal road, another US$760.4 million for the Lauchimo dam electricity transmission system and a third of US$1.1 billion to build a Naval Academy based in Kalunga, Porto Amboim. (macauhub)