Millennium Atlântico, Banco Sol, BAI and BFA are part of a consortium of 27 institutions that will finance Sonangol Finance, the international fundraising arm of Angola’s state-owned oil company. The syndicate includes major global financial institutions such as France’s Société Générale, Germany’s Deutsche Bank, the UAE’s First Abu Dhabi Bank (FAB), Afreximbank and South Africa’s Standard Bank.
Four Angolan banks have joined the international syndicate of 27 lenders that will provide financing to Sonangol Finance, the financial subsidiary of Sonangol EP established to raise funds in international markets on behalf of the Angolan state-owned energy group.
Although no official information has yet emerged from Sonangol’s 22-storey headquarters — home to Africa’s second-largest oil producer and the backbone of Angola’s public finances — documents reviewed by O Telegrama indicate that the transaction is expected to take effect on the 18th of this month, when the closing deal, marking the finalisation of the contract and funding arrangement, is scheduled to take place.
Overall, Sonangol will raise US$2.65 billion in debt financing, with the proceeds earmarked for both capital expenditures (CAPEX) and operating expenditures (OPEX).
Under the terms of the transaction, both disbursements and repayments will be made in US dollars, with monthly payments covering principal and interest over a period of up to seven years. Early repayment is permitted at the borrower’s discretion, although Sonangol Finance would be required to pay a penalty fee in accordance with the participating banks’ pricing schedules.
Among the four domestic lenders participating in the syndicate, Banco de Fomento Angola (BFA) committed the largest amount, providing a US$35 million ticket. It was followed by Banco Millennium Atlântico (BMA) with US$30 million, Banco Angolano de Investimentos (BAI) with US$25 million, and Banco Sol with US$15 million.
For Angola’s banking sector, the transaction represents an important opportunity to increase and diversify returns on foreign-currency investments, enhance international visibility and strengthen local banks’ experience in transactions led by international lending syndicates.
Other Participants
Among the 27 participating institutions, France’s Société Générale is the largest lender in the deal, contributing US$400 million. South Africa’s Standard Bank of South Africa Limited ranks second with US$350 million, while the UAE’s largest bank, First Abu Dhabi Bank PJSC, is providing US$234 million.
Deutsche Bank, South Africa’s Absa Bank Limited and Absa Bank Mauritania have each committed US$200 million. Abu Dhabi Commercial Bank PJSC and China’s Bank of China Limited will each contribute US$125 million, while FirstRand Bank Limited’s London branch is providing US$150 million. Access Bank UK Limited and ICBC Standard Bank Plc have each committed US$100 million.
Other participants with smaller commitments include Bank of Africa United Kingdom Plc (US$8 million), the Dutch NEXENT Bank (US$8 million), Germany’s Atlantic Forfaitierungs AG (US$7 million), and Banque Misr, based in Dubai, with a contribution of US$50 million.
Source: O Telegrama
