The African Export-Import Bank (Afreximbank) has closed a US$1.75bn syndicated receivables purchase facility for Sonangol to help boost Angola’s national oil company’s exports.
The facility is set to help Sonangol “meet its operating and capital expenditure needs by strengthening export-linked trade structures”, as well as to “provide sustainable funding to the Angolan oil and gas sector”, Afreximbank said.
Afreximbank played a “balance-sheet-led role in the financing, structuring and syndication of the facility”, it said, helping to design a “de-risked structure that mitigates oil price volatility and allows for flexible security arrangements”.
The African lender worked with “other mandated lead arrangers” on the deal, although it hasn’t revealed which ones.
Haytham El Maayergi, Afreximbank’s executive vice-president, global trade bank, said: “This US$1.75bn syndicated receivables facility underscores Afreximbank’s commitment to supporting African energy champions and safeguarding export capacity that is critical to our member states’ macroeconomic sovereignty and trade resilience.
“The transaction will help Sonangol meet its operating and capital needs, sustain export flows, increase energy availability, and support Angola’s broader industrialisation and economic transformation, while directly contributing to increased African participation in global trade,” he added.
The announcement comes just days after the regional lender made headlines for cutting ties with credit agency Fitch, accusing it of failing to understand its mandate.
Meanwhile, Sonangol also made its international bond issuance debut last week, raising US$750m in a transaction arranged as a private placement and counting Standard Chartered as sole arranger and bookrunner.
Alongside the Afreximbank facility, the deal is set to support Sonangol’s restructuring and long-term growth plans, the state company said.
Sonangol is reportedly gearing up for a potential IPO of up to 30% of its capital to boost strategic infrastructure projects such as refining capacity.
