Standard Chartered announces USD 73 million of Social Loan financing for the Ministry of Finance of the Republic of Angola to expand the University of Namibe. Situated in the Southwest of the country, the University offers academic and professional training in fishery, technology, humanities, and nature.
Commenting on the loan financing, Claudia Conceicao, CEO, Angola said: “This important Social Loan reinforces Standard Chartered’s reputation as a leader and innovator in ECA-supported financing in Sub-Saharan Africa. We are proud to deliver another financing, working closely with KUKE, for the Angolan Ministry of Finance.”
The Bank acted as Social Loan Co-Ordinator, Bookrunner, Original Mandated Lead Arranger, Structuring and Coordinating Bank, Original Lender and Facility Agent, supported by the Polish Export Credit Agency, Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE) S.A. The project is also being developed through a turn-key EPC contract (a contract which includes the complete scope of project work from start to finish) with a leading Polish EPC contractor, Quenda Business Initiative. The blend of KUKE and commercial financing helps the Angolan Ministry of Finance access long term financing for key infrastructure at a competitive pricing level. This is a priority education project in Angola, aligned with the Government of Angola’s plan to improve its education and fisheries sectors. As a public university, the project will contribute to the revitalisation of the Namibe fishing and marine industry.
The funds will help complete a fully functional university campus, which will have a significant impact on the local economy of the city of Moçâmedes, as well as the entire Namibe region. Access to higher education, which was previously only available in other major cities, will be available locally, encouraging young people to stay in southern Angola. The arrival of university teachers and staff will increase demand for goods and services, and the facilities will create new, permanent jobs for locals. This project offers the opportunity to establish a synergy between higher vocational education and industry, with the proximity of local industries being favourable for student internships, which are of essential importance in fishery training programmes.
Janusz Wladyczak, CEO, KUKE, said : “This project shows that Polish companies can win contracts on markets where they have been present only marginally so far. KUKE played here an important role by connecting the participants and securing the financing. We are proud that after being involved in developing maternity hospitals in Ivory Coast, we do support another project with such positive impact on local community in Africa.”
This transaction follows the recent announcement[1] of EUR 238 million of ECA-supported financing for the government of Angola to build new infrastructure, supporting the country’s agricultural industry and transport network. In September 2021, the Bank also announced[2] US$ 1.1 billion financing to develop critical water supply infrastructure to serve the Angolan capital Luanda.
[1] https://www.sc.com/uk/2022/12/01/standard-chartered-announces-eur-238-million-of-financing-to-build-agricultural-and-transport-infrastructure-in-angola/
[2] https://www.sc.com/en/feature/usd-1bn-financing-project-water-infrastructure-angola/