Standard Chartered has led a €538mn financing deal for the Angolan government to support the second phase of a project set to expand potable water distribution across Luanda.
The financing for the Quilonga Grande Water System, commissioned by Empresa Pública de Águas under Angola’s Ministry of Energy and Water, was backed by the French export credit agency (ECA) Bpifrance and French public development bank Sfil.
Standard Chartered acted as ECA coordinator, structuring bank, sole bookrunner and mandated lead arranger for the transaction.
Given “the involvement of French suppliers in the water and sanitation sectors”, Bpifrance provided “comprehensive insurance cover” to offer lenders “substantial credit risk mitigation, while ensuring reliable funding for the French companies participating in this strategically important infrastructure project for Angola”, according to a Standard Chartered statement.
The lender said the “long-term financing” was a “syndicated loan transaction undertaken with commercial banks” but declined to disclose further details on the tenor, participating banks or exporters involved.
Sfil took part through its export credit refinancing scheme, buying a portion of the commitments from the original lenders.
The deal has not yet reached financial close, GTR understands.
The project involves drawing water from the River Kwanza and processing it through a new treatment plant with a capacity of 518,000m³ per day. The expanded network is expected to “significantly improve access to safe drinking water” for around five million people across the urban region, Standard Chartered said.
The bank added the scheme is expected to lower the incidence of waterborne diseases and create more than 1,500 direct jobs during construction.
Mustafa Sajjad Hussain, executive director for development and agency finance at Standard Chartered, said: “This financing underscores Standard Chartered’s commitment to supporting sustainable infrastructure development across Africa.
“The Quilonga Grande Phase 2 project represents a transformational investment in Angola’s future, helping to improve access to safe and reliable drinking water for millions of people in the Greater Luanda Metropolitan Area.”
The project is being developed by a consortium led by Casais Engenharia e Construção (Casais), a Portuguese engineering, procurement and construction contractor.
Helder Araujo, board member at Casais, said: “Luanda is growing fast, and reliable potable water comes before everything else; given its impact on public health and dignity, the ability of families and businesses to look ahead all depend on it.
“Phase 2 is what carries treated water into homes, schools and healthcare facilities, and that is where the difference will be mostly felt. A project of this scale is only deliverable when a public promoter, an international consortium and lenders come together, committing to this unique long-term objective – that is what this financing is all about,” he said.
The deal builds on Standard Chartered’s record of ECA- and DFI-backed lending in Angola. The bank arranged a £371mn UKEF-backed guarantee for a new international airport in Cabinda in 2025, a €415mn deal for flood-defence and water infrastructure upgrades in Benguela in 2023, and a major US$1.1bn Luanda water supply project in 2021, with support from the World Bank and Bpifrance.
The French ECA also backed a separate €200mn ProÁgua water infrastructure project in Angola, led by HSBC, in October last year.
