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

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.

Additional details

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 Government of Angola secured loans from official sector institutions in China worth $4,193,153,000 in 2018 (see https://www.dropbox.com/s/kwxk7hpv0dyicpi/DRS%20Official%20Commitments%20from%20China%20through%202020.csv?dl=0). AidData relies on the more conservative estimate. This discrepancy warrants further investigation.

Number of official sources

4

Number of total sources

16