Banks back Angola oil firm debts

LUANDA – Lenders to Sonangol, Angola’s national oil company, had attracted nine more banks to help underwrite a US$2,25 billion (N$14 billion) loan, banks involved in the transaction said yesterday.

The loan, which is secured by oil contracts with foreign companies, was boosted from an initial US$2 billion. Standard Chartered, Credit Agricole and Royal Bank of Scotland Group are co-ordinating the transaction.Barclays, Commerzbank, Deutsche Bank, Banco Espirito Santo, KBC Bank and Natexis Banques Populaires are helping to arrange the loan.The nine new lenders included Societe Generale and BNP Paribas SA, the bankers said.A full list will be disclosed later this week.The amortising loan has a maturity of about five and a half years.The interest margin starts at 3,125 percentage points more than the London interbank offered rate (Libor) for the first year.It rises to 3,25 percentage points in the second year and to 3,375 percentage points after that.Three-month Libor is 1,6 per cent.The interest margin is higher than the 2,25 percentage point premium Sonangol agreed to pay last year to borrow US$1,15 billion for five and a half years.-Nampa-AFPStandard Chartered, Credit Agricole and Royal Bank of Scotland Group are co-ordinating the transaction.Barclays, Commerzbank, Deutsche Bank, Banco Espirito Santo, KBC Bank and Natexis Banques Populaires are helping to arrange the loan.The nine new lenders included Societe Generale and BNP Paribas SA, the bankers said.A full list will be disclosed later this week.The amortising loan has a maturity of about five and a half years.The interest margin starts at 3,125 percentage points more than the London interbank offered rate (Libor) for the first year.It rises to 3,25 percentage points in the second year and to 3,375 percentage points after that.Three-month Libor is 1,6 per cent.The interest margin is higher than the 2,25 percentage point premium Sonangol agreed to pay last year to borrow US$1,15 billion for five and a half years.-Nampa-AFP