CDB provides $1 billion loan to Sonangol to support its development efforts (Linked to Project ID#53063)
Commitment amount
$ 1174123557.9258451
Adjusted commitment amount
$ 1174123557.93
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Angola
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
On December 27, 2012, China Development Bank (CDB) and Sonangol Finance Limited — a wholly owned subsidiary of Sociedade Nacional de Combustiveis de Angola (Sonangol), Angola's state-owned oil company — signed a $1 billion loan agreement to support the company’s ‘development.' The loan had a maturity of 10 years and an interest rate of LIBOR plus a 3.5% margin, but its other borrowing terms are unknown. On August 31, 2017, Sonangol completed an $200 million early loan repayment as part of a 2016 debt refinancing agreement with CDB.
Additional details
1. The interest rate that applies to this loan (4.015%) was calculated by taking the average 6-month LIBOR rate during the month (December 2012) when the loan agreement was finalized (0.515%) and adding a 3.5% margin.
Number of official sources
3
Number of total sources
7
Details
Cofinanced
No
Direct receiving agencies [Type]
Sonangol Finance Limited [State-owned Company]
Implementing agencies [Type]
Sonangol Finance Limited [State-owned Company]
Government of Angola [Government Agency]
Collateral
This loan was collateralized with future revenues from the sale of oil exports.
Loan Details
Maturity
10 years
Interest rate
4.015%
Grant element (OECD Grant-Equiv)
17.8302%