The President of Angola João Lourenço has authorized the signing of financing agreements totaling $1.5 billion (€1.4 billion), according to a presidential order issued on December 11.
The majority of the funding involves a major North American bank and a British financial institution, coming just a week after U.S. President Joe Biden’s visit to Angola. The visit aimed to help Angola diversify its financing sources and reduce its reliance on China. Banco BIC Português is also participating in the agreements.
The largest loan, amounting to $600 million (€572 million), is with J.P. Morgan Securities plc. This financing takes the form of a total return swap (a financial instrument) secured by an issue of treasury bonds, intended to address Angola’s treasury needs.
Another agreement, valued at $500 million (€476 million), is being finalized with Standard Chartered Bank (SCB). This loan is aimed at strengthening treasury reserves while supporting public investment projects, as well as the importation of food and medical supplies.
Additionally, President João Lourenço approved a $400 million (€381 million) loan for the Social Protection System Strengthening Project. This initiative is part of the government’s broader Human Development and Social Well-Being program.
Lastly, a financing agreement with Banco BIC Português, valued at €60 million, has been authorized. This loan, backed by Banco Português do Fomento, will fund the construction of the National Road EN 120, specifically the Cuima (Gove bypass) to Chipindo section, spanning 56 kilometers, including bridges, in the provinces of Huambo and Huíla.