CDB extends $1.5 billion credit line to Angola for infrastructure projects

On November 9, 2009, Angola's Ministry of Finance and the China Development Bank (CDB) entered into a $1.5 billion common terms agreement to support social housing, agriculture, roads and railways, schools and hospitals, water and energy production, and transportation and telecommunication projects (to be mutually agreed upon by the Government of Angola and China) (see ''THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048'' p. 131 and ''China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil'' p. 93 and ''NEITHER ''FRIENDSHIP FARM'' NOR ''LAND GRAB'': CHINESE AGRICULTURAL ENGAGEMENT IN ANGOLA'' p.3). The common terms agreement is a master agreement under which Angola and CDB may conclude individual facility agreements for the purpose of financing the contract price owing to certain approved contractors and suppliers in respect of certain approved social and economic infrastructure projects in Angola (see ''2015 Government of Angola Bond Prospectus'' p. 108). The term and amount of each facility is set out in each relevant individual facility agreement. As of June 20, 2015, the facility is no longer available, with an aggregate of $613.5 million outstanding as of December 31, 2017, under the individual facility agreements entered into under this common terms agreement (see ''2015 Government of Angola Bond Prospectus'' p. 108 and and ''THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048''). No oil guarantee was provided for this line of credit and the interest rate for the line was at a commercial rate (see ''NEITHER ''FRIENDSHIP FARM'' NOR ''LAND GRAB'': CHINESE AGRICULTURAL ENGAGEMENT IN ANGOLA'' p. 3). According to the the Chinese Ministry of Agriculture and Rural Affairs's Foreign Economic Cooperation Center, this 1.5 billion credit line was mainly used for agricultural development. The projects funded through this line of credit are listed below:Pedras Negras Farm Project (#64146)Longa Rice Planting Agro-Industrial Farm Project (#64184)Camaiangala Agroindustrial Farm Project (#64200)Phase 1 of Sanza Pombo Farm Project (#64152)Camacupa Agro-industrial Farm Project (#64148)Manquete Agro-Livestock Development Project (#43785)Moçâmedes Railway Renovation Project (#64862)Camama Municipal Infrastructure Project (#67366)Caxito Irrigated Perimeter Construction Project (#64674)Ganjelas Irrigated Perimeter Construction Project (#64677)Luena Irrigated Perimeter Construction Project (#64678)Humpata Irrigated Perimeter Construction Project (#64679)Viana Integrated Infrastructure Construction Project (#67189)

Additional details

According to China Development Bank's website, it provided Angola's Ministry of Finance with a $4 billion ‘sovereign loan’, which is a specific type of loan that only CDB issues (Chinese name: 主权类外汇贷款). It is likely that this $1.5 billion credit line is part of the $4 billion sovereign loan that is referenced. The remaining $2.5 billion is captured in Project ID#66806.

Number of official sources

10

Number of unofficial sources

10