The loan, if confirmed by BBVA, comes in the context of Angola’s attempt to diversify its sources of financing beyond China and its economy beyond oil exports.
The Angolan government is negotiating a loan of up to $1 billion (€950 million) with the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), according to financial news agency Bloomberg, which cited sources involved in the process.
According to the agency, the loan will be used to finance public investments in various sectors that promote the diversification of the economy beyond oil, which still accounts for more than 90% of Angola’s exports.
The agreement has not yet been approved and has not been confirmed by BBVA, but the Angolan government acknowledged to Bloomberg that there is a proposal to finance public projects using Spanish funds, without providing further details.
If confirmed, the loan comes as part of Angola’s efforts to diversify its sources of financing beyond China, which remains the largest international creditor of this Portuguese-speaking African nation, the second-largest oil producer in Sub-Saharan Africa.
In 2014, the Spanish bank BBVA granted a €500 million loan to finance export contracts for Spanish producers, according to a prospectus presented to investors late last year, which was used to prepare a $2 billion (approximately €1.9 billion) bond issuance.
In 2020, BBVA again provided a €500 million loan to finance export contracts, according to the same document, which is a report on Angola’s financial and economic activity designed to attract investors to the country.
According to Bloomberg, the Angolan government is also meeting with investors from the Middle East, Europe, and the United States to gauge investor sentiment regarding a potential external debt issuance (Eurobonds) of up to $2 billion this year. This was revealed by the Minister of State for Economic Coordination, José de Lima Massano, during his visit to Davos in January.
Observador , 24/02/2025
