CDB provides $1 billion loan to Sonangol to support its development efforts (Linked to Record ID#53063)

📋 Staff Comments

1. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
2. Evidence of the loan's full and final repayment can be found on pg. 151 of https://www.dropbox.com/scl/fi/7jhwalmuyavwszvspq1x5/sonangol-annualreport-2017-eng.pdf?rlkey=w6n6njkitwzzczdg1k8coeshg&dl=0 3.
3. A pre-export finance (PXF) facility an arrangement in which a commodity (e.g. oil) producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed.

📚 Sources & References

• China's loans for oil: asset or liability?
• China in Angola: The Pros and Cons of China'a Aid Structure
• Chinese Loans to Africa Database
• Eastern Promises: New Data On Chinese Loans in Africa, 2000 to 2014
• The EU and China in African Authoritarian Regimes: Domestic Politics and Governance Reforms
• RELATÓRIO DE GESTÃO E CONTAS CONSOLIDADAS 2018
• Sonangol MANAGEMENT REPORT AND CONSOLIDATED ACCOUNTS 2016
• RELATÓRIO DE GESTÃO & CONTAS CONSOLIDADAS 2017 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.