Deutsche Bank funds a key project in Angola

Deutsche Bank has announced the successful closure of a 10-year lending facility worth $305 million to Angola’s Ministry of Finance. The loan aims to support the construction and rehabilitation of a significant infrastructure project in the country. This financing arrangement, known as the “EN230 road project,” has obtained 95 percent insurance coverage from the African Trade Insurance Agency (ATI).

Playing various key roles in the transaction, including Sole Mandated Lead Arranger, Original Lender, and Facility Agent, Deutsche Bank utilized its Africa Coverage, Emerging Markets Structuring, and Trust and Agency Services teams. This milestone marks the first-ever financing in Angola to benefit from a first loss cover provided by the African Trade Insurance Agency.

The EN230 project is part of a broader national development plan that focuses on enhancing Angola’s transportation infrastructure. With its strategic location along the Atlantic Ocean and neighboring mineral-rich landlocked countries, Angola has the potential to become a significant logistics hub for Southern Africa.

The primary objective of the EN230 road project, which has received priority status from the Government, is to improve connectivity between the capital city of Luanda and one of the country’s most challenging provinces. By enhancing access to the port of Luanda and Luanda Railway, this initiative aims to facilitate trade and enhance the transportation and logistics network within a strategically important corridor.

Maryam Khosrowshahi, Co-Head of Africa Coverage, Head of CEEMEA Public Sector Debt Capital Markets, and Chair of Global SSA at Deutsche Bank, expressed pride in the longstanding relationship between the bank and the Republic of Angola. Khosrowshahi highlighted the significance of being selected as the partner of choice for this critical infrastructure development initiative. Furthermore, she acknowledged the partnership with ATI and their support in achieving a successful execution. Deutsche Bank remains committed to structuring innovative financing solutions on the African Continent, particularly in collaboration with Angola on priority transactions with substantial social and sustainability impact.

Manuel Moses, CEO of ATI, emphasized the strategic importance of the project and ATI’s pride in supporting it. He noted that this initiative aligns with the Angolan Government’s commitment to diversify the economy. As the largest DFI Insurer on the continent, ATI continues to play a pivotal role in supporting strategic infrastructure projects in its member countries. Moses expressed gratitude towards Deutsche Bank for their consistent support and commitment to the continent, as evidenced by their collaborative efforts over the years.

Deutsche Bank’s track record in Angola spans two decades, during which the bank has actively supported infrastructure projects across various sectors. Recently, Deutsche Bank provided a loan of €57 million to finance the construction of a fully automated soybean and sunflower crushing plant in Lobito. Set to be the largest of its kind in Africa, this project was executed under the Framework Export Credit Agreement (FA) signed in May 2019 between Deutsche Bank, Banco de Desenvolvimento de Angola (BDA), and Angola’s Ministry of Finance (MoF). These ongoing investments reflect Deutsche Bank’s commitment to fostering economic growth and facilitating sustainable development in Angola.