CDB provides $2 billion loan for infrastructure activities and repaying existing debts to Chinese creditors

📋 Staff Comments

1. This CDB loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
2. For the time being, AidData assumes that this loan was collateralized against the proceeds of oil sales since virtually all previous CDB loans to the Government of Angola were collateralized in this way.
3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 15.6595-years in 2018. AidData estimates the maturity of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 2.6102-years in 2018. AidData estimates the grace period of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=05. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 6.0089% in 2018. AidData estimates the interest rate of the CDB loan that the Government of Angola contracted in October 2018 by using this figure. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=0

📚 Sources & References

• China extends $2billion credit facility to Angola
• Angola’s Lourenço announces $2 billion Chinese loan
• Angola presents new financing request to China
• China grants US$2 billion credit line to Angola, https://www.platformchinaplp.mo/trade_content_o.php?id=127209&lang=zhs
• 中国与安哥拉能源合作中非合作良好示范
• Angola and China assess cooperation
• PR recebe mensagem do homólogo da China
• China disburses $2bn for infrastructure in Angola
• Angola secures $2 bln in infrastructure financing from China
• Xi Meets Angolan President: Angola hopes to build bilateral relations model of China and Africa
• In Beijing
• Angolan João Lourenço gets a loan of 2 billion dollars
• Newsletter of the Embassy of Angola in Hungary: NEWLETTER N°31 // OCTOBER 2018
• Fitch downgrades Zambia; US regulator fines Mashreqbank over compliance issues
• Angola paga dívida com uma parte da nova linha de crédito da China
• DRS Official Commitments from China through 2020
• July 2024 IDS Data on Angola's 'Private' and 'Official' Chinese Borrowings and Borrowing Terms 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.