Two Contract Loan Agreements Based on Export Credit Line for the Republic of Angola
Supporting Export of Equipment and Services Related to the Port Sector in Angola by Japanese Companies
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on March 28, 2019, two contract loan agreements amounting up to approximately ① JPY14.4 billion and USD126 million (both JBIC's portions), as well as approximately ② JPY2.3 billion and USD30 million (both JBIC's portions) with the government of the Republic of Angola, based on the export credit line provided in January 2019.*1
These agreements are both co-financed with Sumitomo Mitsui Banking Corporation (Agent) and the Hongkong and Shanghai Banking Corporation Limited (Tokyo branch), bringing the total co-financing amount to approximately ① JPY24.1 billion and USD211 million and ② JPY3.9 billion and USD51 million, insured by Nippon Export and Investment Insurance (NEXI).
These agreements provide necessary funds to the government of Angola to procure construction-related works and equipment (container cranes, work ships, jetty material and steel material equipment) from Toyota Tsusho Corporation and Toa Corporation for ① the Namibe Port Expansion and ② the Sacomar Export Terminal Rehabilitation.
In Angola, the optimization of logistics through establishing logistics bases in the southern part of the country and the acquisition of foreign currencies by promoting mineral resource exports are important issues. Therefore, these two projects are recognized among the highest-priority projects in Angola's public investment plan. In addition to contributing to the development of the ports of Angola, these projects will contribute to maintaining and enhancing the international competitiveness of Japanese industry by promoting the export of port-related equipment to the country by Japanese companies.
The seventh Tokyo International Conference on African Development (TICAD VII) is planned to be held in Yokohama in August of this year. As Japan's policy-based financial institution, JBIC will continue to support exports to Africa and the creation of business opportunities in Africa for Japanese companies by drawing on its various financial instruments for structuring projects and performing its risk-assuming function.