Angola approves financing for the construction of the Luena-Saurimo railway section

August 8, 12:30

According to Presidential Decree No. 269/26 of August 5, it is permitted to conclude a financing agreement between the Angolan state and HSBC Bank Plc, which acts as the organizer, coordinator, and agent, as well as with financial institutions belonging to the creditors' syndicate, involving export credit agencies UKEF, KUKE, and ATRADIUS.

This financing agreement includes amounts of up to 250 million euros from the credit line covered by the British Export Credit Agency (UKEF), up to 290 million euros from the credit line covered by the Polish Export Credit Agency (KUKE), and up to 125 million euros from the credit line covered by the Dutch Export Credit Agency (ATRADIUS).

It was also authorized to conclude a financing agreement between Angola and HSBC Bank Plc as the organizer of the creditors' syndicate institutions for an amount of 162.2 million dollars (142.2 million euros), intended to cover the initial down payment of 15% of the commercial contract value related to the construction project of the Luena-Saurimo section of the Benguela Railway.

The document emphasizes that the strategic expansion of the Benguela Railway required the Angolan government to prioritize the construction project of the 260-kilometer Luena-Saurimo railway section, connecting Luena (Mossico) with Saurimo (Lunda Sul).

It is highlighted that the expansion of this section will ensure a significant improvement in the movement of people and goods in the eastern region, support the development of the Grain Production Development Plan, and increase the efficiency of marketing agricultural and processed products to main ports, thereby reducing logistical costs.

This authorization was aimed at securing the necessary financial resources for the implementation of the specified Public Investment Project, which is also intended to support the connection of the east with Lobito Port and stimulate the transportation of strategic mineral resources such as copper, cobalt, and manganese.

noticiasaominuto.comJuly 27, 17:27

Angola raises 288 million euros from the sale of 15% of Unitel

The Angolan Stock and Securities Exchange (BODIVA) announced that demand for the 7.5 million shares of the telecommunications operator, made available by the State Assets and Participations Management Institute (IGAPE), reached 9,054,299 titles.

Public Offering Details

Of the 17,549 subscription orders received, 16,571 were accepted, resulting in 11,264 new shareholders of UNITEL, as reported by BODIVA. The physical and financial completion of this operation is scheduled for Tuesday, followed by the full inclusion of UNITEL shares on the Angolan stock exchange on Wednesday, at which point the securities can be freely traded.

Privatization Context

This Public Sale Offer (PSO), which took place between July 6 and 24, is part of the Angolan government's Privatization Program (Propriv) and represents the largest initiative of its kind in Angola. Of the 15% of capital put up for sale, 2% were reserved for company employees, while the remaining 13% were allocated to the general public.

Unitel Profile and History

UNITEL is recognized as the leading telecommunications operator in Angola, holding over 70% of the market share, and was also the first telecommunications sector company to enter the Angolan stock exchange. Previously, UNITEL was jointly owned by the Angolan State, through IGAPE, and the state oil company Sonangol.

The company's capital was distributed across four 25% stakes: PT Ventures (a subsidiary of Portugal Telecom, later incorporated into the Brazilian company Oi), MSTelcom/Sonangol, Vidatel, belonging to businesswoman Isabel dos Santos, and Geni, associated with General Leopoldino Fragoso do Nascimento, known as Dino. In January 2020, Sonangol assumed the PT Ventures stake, coming to control half of the company. Subsequently, in October 2022, the Angolan President, João Lourenço, decreed the nationalization of the Vidatel and Geni stakes, transferring all of the operator's capital to the State.

Future Privatizations

The list of companies subject to privatization by the end of the year includes ten more assets, among them Angola Telecom, which provides fixed telephony, internet, and network infrastructure services.