Investment banking company Deutsche Bank, with the support of pan-African financial institution the African Trade Insurance Agency (ATI), has announced the close of a $305 million, 10-year lending facility to Angola’s Ministry of Finance to support the construction and rehabilitation of a strategic national road in the southern African country.
The EN230 road project, which serves as part of a broader national development plan, will involve the rehabilitation of a 267km national highway that links the locality of Muamussanda, Lunda Norte.
Province to the city of Saurimo, Lunda Sul Province. EN230 serves as part of a 1,100km transport corridor that connects the capital city of Luanda to the country’s primary oceanic port and railway system, thus facilitating trade, improving Angola’s transportation, and leveraging the country’s strategic position as a logistics hub for its mineral-rich, landlocked neighbors.
“We are proud of the multifaceted history of our relationship with the Republic of Angola and the Ministry of Finance and are honored to have been selected as their partner of choice of this very critical infrastructure development initiative,” stated Deutsche Bank Chairperson, Maryam Khosrowshahi, adding, “As part of the country’s commitment to their economic reform agenda, we continue to cooperate closely on a number of priority financing transactions with high social and/or sustainability impact, paving the way for lasting change for the people of Angola.”
The loan will benefit from a 95% insurance cover by the ATI against non-payment by Angola’s Government, thus marking the country’s first financing initiative to benefit from a first loss cover provided by the credit insurer.
“ATI is proud to support this strategically important project which the Government of Angola identified as a priority that supports its efforts to diversify the economy,” stated ATI CEO, Manuel Moses, adding that, “ATI, as the largest development finance institution insurer on the continent, continues to play its pivotal role in supporting strategic infrastructure projects in its member countries and will continue to support the Republic of Angola’s efforts to enhance infrastructure and foster sustainable economic growth.”
Poised to position Angola as a regional logistics and export hub for southern Africa, the infrastructure project is set to benefit from the country’s agreement with neighboring Zambia to strengthen trade and cooperation between the two countries. Furthermore, developments such as the country’s refinery expansion and the recently launched Central African Pipeline System promise new opportunities for advancements in energy security, socioeconomic growth and industrialization, as well as economic diversification.
Work on the EN230 road project will be carried out by engineering and construction company, Omatapalo, and public works and logistics company, Mota-Engil. Deutsche Bank will act as sole mandated lead arranger, original lender, and facility agent on the transaction.
Major developments in Angola’s infrastructure and logistics industries will be unpacked during this year’s edition of the Angola Oil & Gas (AOG) 2023 conference and exhibition, taking place in Luanda from 13-14 September. AOG 2023 serves as the official meeting platform for energy stakeholders, policymakers, and investors, and will host high-level panel discussions, exhibitions, and networking sessions showcasing investments and partnership opportunities across Angola’s energy space while highlighting the role of the country’s resources and industries in the shifting global economy.