Sace has guaranteed a €164mn term loan facility, structured by BNP Paribas, which will be used to invest in the Luanda-Soyo highway in Angola.

BNP Paribas CIB will act as the sole structuring bank and agent in the facility, in favour of the Angolan Ministry of Finance.

The facility will finance part of the construction costs of the last section of the Luanda-Soyo motorway (N’Zeto-Soyo) awarded to the Italian construction and infrastructure company, CMC Ravenna, within the Angola government’s programme to link the Angolan capital to the Northern Provinces.

The overall project, worth €250mn, entails the construction of 44.8 kilometres (out of the total 500 kilometres) of the two-lane motorway between Luanda and Soyo, in Northern Angola, a strategic area for oil and gas industry.

The finalisation of the transaction was announced during an Italian government official’s visit to Luanda. Sace foresees important business opportunities in various sectors for Italian businesses in Angola, in light of the new government’s commitment to attract investments to boost infrastructure development, mining, agribusiness and tourism.

According to Sace forecasts, Italian exports to Angola will grow at an average annual rate of 8%, with even higher performance in key areas for the development of local industry such as mechanical engineering (8.5%) and electrical appliances (9%); but also in sectors connected to the expansion of private consumptions, like agribusiness that will score an average growth of 12.1% over the next four years.