Angola Secures US$1.4 Billion Loan To Build 48 Mini-Grids

Standard Chartered has a long record of providing ECA-backed financing to Angola.

By Liz Bains on
6th July 2023

Angola’s Ministry of Finance has secured EUR 1.29 billion (US$1.4 billion) in financing from the UK's Standard Chartered to construct off-grid electricity infrastructure. 

The loan will fund 48 hybrid photovoltaic generation systems with energy storage, which act as mini-grids, benefiting more than 200,000 households in 60 communities that are not connected to the national grid.

The communities are in the provinces of Moxico, Lunda Norte and Lunda Sul, Bié and Malanje. Part of the loan will also be used to expand the national grid in Malanje. Portugal's MCA Group will carry out the construction and project management.

Of the EUR 1.29 billion total, EUR 1.2 billion is backed by German export credit agency (ECA) Euler Hermes, and the remaining EUR 0.09bn is a commercial loan. Standard Chartered acted as the sole bookrunner, original lender, structuring bank and mandated lead arranger for the deal.

Standard Chartered has a long record of providing ECA-backed financing to Angola’s Ministry of Finance to support infrastructure projects.

Earlier this year, the bank provided Angola with a Euro 149 million social loan to build a new hospital in Kilamba. That transaction was backed by UK Export Finance.

The 250-bed, seven-storey hospital will include a specialist burns ward in addition to accident and emergency, and general and paediatric health services. The contractor for the project is ASGC UK.

In December 2022, Standard Chartered also provided Euro 238 million in financing to support the rehabilitation of a 98km section of the EN140 national road and the construction of a bio-veterinary centre in Angola.

EUR 96 million was directed for the renovation of the EN140 between Mussende and Cangandala. Gauff GmbH & Co Engineering KG is the principal contractor for the project, working with consortium partner QG Konstruktion. The consortium previously rehabilitated the Cariango-Mussende section.

EUR 142 million was directed towards the construction of a bio-veterinary centre for the production and development of animal vaccines in Huambo.

A consortium of Gauff GmbH & Co Engineering KG and Noráfrica is designing and building the centre.

The term loan facilities were backed by Euler Hermes.

Photo: Street in Angola (© Alan Gignoux | Dreamstime)

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