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Overview

CDB provides $2 billion loan for infrastructure activities and repaying existing debts to Chinese creditors

Commitments (Constant USD, 2023)$2,012,592,588
Commitment Year•2018Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 9, 2018
First repayment (originally scheduled)
May 18, 2021
Last repayment (originally scheduled)
Jun 2, 2034

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Angola Ministry of Finance

Loan description

CDB provides $2 billion loan for infrastructure activities and repaying existing debts to Chinese creditors

Grace period•2.6102 yearsGrant element•21.2081%Interest rate (t₀)•6.0089%Interest type•Fixed Interest RateMaturity•15.6595 years

Collateral

Proceeds of oil sales

Narrative

Full Description

Project narrative

On October 9, 2018, China Development Bank (CDB) and the Government of Angola’s Ministry of Finance signed a $2 billion facility (loan) agreement. The borrowing terms of the loan are unknown. The proceeds of the loan were to be used by the borrower to support construction, energy, water and industry activities. However, at the time that the agreement was signed, Angola’s Minister of Finance, Archer Mangueira, announced that the loan proceeds could would also be used to service existing debts to Chinese creditors.

Staff comments

1. This CDB loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 2. For the time being, AidData assumes that this loan was collateralized against the proceeds of oil sales since virtually all previous CDB loans to the Government of Angola were collateralized in this way. 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 15.6595 years in 2018. AidData estimates the maturity of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 2.6102 years in 2018. AidData estimates the grace period of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 6.0089% in 2018. AidData estimates the interest rate of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=0