Africa’s financial firm, Afreximbank, has secured a $1.75 billion syndicated receivables purchase loan for Sonangol, Angola’s state owned oil company.
The deal, one of the oil firm’s largest multinational financings, also includes other mandated lead arrangers, according to people familiar with the matter who spoke on Tuesday.
Afreximbank said the facility would support Sonangol’s operating and capital expenditure requirements.
The bank added that the transaction also aligns with its mandate to promote African-led financing that supports growth, industrialisation, and economic self-reliance.
Afreximbank played a balance sheet led role in structuring and syndicating the facility. The financing was designed to provide steady funding to Angola’s oil and gas sector while offering lenders clear repayment assurance.
Commenting on the transaction, Haytham Elmaayergi, Executive Vice President for Global Trade Bank at Afreximbank, said the facility supports export capacity.
“This $1.75 billion syndicated receivables facility underscores Afreximbank’s commitment to supporting African energy champions and safeguarding export capacity that is critical to our member states’ macroeconomic sovereignty and trade resilience,” Elmaayergi said.
He added that the structure provides comfort to lenders while easing traditional security requirements.
“By deploying innovative structures that provide comfort to lenders while easing traditional security requirements, we are able to crowd source much needed capital into strategic sectors,” he stated.
The financing comes as Sonangol seeks additional funding to meet its operating obligations. The company is also at the cusp of a public listing, increasing its need for stable funding sources.
How the facility will support Sonangol
According to the bank, the loan will enable Sonangol to meet its operating and capital needs. This will be achieved through export linked trade structures tied to crude oil sales. The structure reduces exposure to oil price volatility.
Elmaayergi said that the facility would support export flows and energy availability in Angola.
“The transaction will help Sonangol meet its operating and capital needs, sustain export flows, increase energy availability, and support Angola’s broader industrialisation and economic transformation,” he said.
The funding is expected to strengthen export proceeds from Angola’s oil sector. Beyond this, the facility would support value creation across the wider economy.
Why Afreximbank is backing Angola’s oil sector
The transaction fits into its strategy of supporting African businesses champions in strategic industries. The energy exports remain critical to trade revenues for several African economies.
Financing tied to exports helps increase Africa’s share of global trade. Moreover, the lender stated that supporting oil and gas operations remains important for industrial activity and public revenue.
African Export Import Bank is a pan African multilateral financial institution mandated to finance and promote intra and extra African trade.
At the end of December 2024, Afreximbank’s total assets and contingencies stood at over $40.1 billion, while shareholder funds amounted to $7.2 billion.
