Madrid, Feb. 24, 2025 (Lusa) - The Angolan government is negotiating a loan of up to US$1 billion (€950 million) with Spanish bank Bilbao Vizcaya Argentaria (BBVA), revealed financial news agency Bloomberg, citing people involved in the process.

The loan, says the agency, will be used to finance public investments in various areas that will encourage the diversification of the economy beyond oil, which continues to account for more than 90% of Angola's exports.

The agreement, which has not yet been approved, has not been confirmed by BBVA, but the Angolan government confirmed to Bloomberg that there is a proposal to finance projects with public money using funds of Spanish origin, without giving any further details.

The loan, if confirmed, comes in the context of an attempt to diversify Angola's sources of funding beyond China, the largest international creditor of this Portuguese-speaking country, which is the second largest oil producer in sub-Saharan Africa.

In 2014, the Spanish bank BBVA lent €500 million to finance export contracts for Spanish producers, according to the prospectus shown to investors at the end of last year, which was used to prepare a US$2 billion (around €1.9 billion) issue.

In 2020, BBVA again lent €500 million to finance export contracts, according to the same document, which is a report on Angola's financial and economic activity to convince investors to invest in the country.

The Angolan government is also, according to Bloomberg, meeting with investors from the Middle East, Europe and the United States to "test investor sentiment on an issue that could go up to US$2 billion in foreign debt (Eurobonds) this year, as revealed by the Minister of State and Economic Coordination, José de Lima Massano, during his time in Davos in January.

MBA/AYLS // AYLS

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