Standard Chartered announces EUR1.29 billion financing for development of solar-powered electricity infrastructure in Angola
on 30 Jun 202329 June 2023, London, UK – Standard Chartered announces EUR1.29 billion of financing for the Angolan Ministry of Finance to construct photovoltaic electricity distribution infrastructure. The new generation systems will support rural villages across the country to become more self-sufficient and less reliant on Angola’s main electricity network.
The electrification project is being developed by the Angolan Ministry of Energy and Water and benefits approximately 203,000 households (circa one million Angolans) in 60 communities1. These are namely the provinces of Moxico, the country’s largest province located in the East, Lunda Norte and Lunda Sul in the North East, Bié in the central part of the country and Malanje that is found in the North West.
The loan will fund 48 hybrid photovoltaic generation systems with energy storage that act as ‘mini grids’ and operate autonomously, and will provide access to 100% renewable electricity2 for communities not connected to the national electricity grid. Additionally, the financing will support the expansion of the national grid in Malanje and build new lines and networks connecting other municipalities. The installation of the new electricity network will help diversify the country’s energy mix and calculations3 show that it can save up to 7.9 megatonnes of CO2 emissions.
The financing is backed by German Export Credit Agency Euler Hermes4 and the contractor MCA Group5 is managing the construction and project management. Of the EUR1.29 billion total, EUR1.2 billion is supported through Euler Hermes and the remaining EUR0.09 billion is a commercial loan. Standard Chartered acted as sole Bookrunner, Original Lender, Structuring Bank and Mandated Lead Arranger. The Bank structured the financing to help meet eight of the United Nations’ Sustainable Development Goals6 and align to environmental and social risk management international best practices.
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered Bank, said: “We are thrilled to complete the financing of this important project for the Angolan government to supply renewable energy-sourced electricity to local communities. It’s another great example of our collaboration with ECAs and contractors to deliver for our clients.”
Edna Schöne, Executive Board Member, Euler Hermes, said: “We are really proud that we, as ECA, can play a part in supporting this sustainable project with Export Credit Guarantees of the Federal Republic of Germany. This project is not only of crucial importance for Angola and sub-Saharan Africa but helps to reduce greenhouse gas emissions. We are pleased that many German small and medium-sized companies are involved in this project and will contribute to its success with their technology and know-how.”
Manuel Couto Alves, Executive Chairman and Founder, MCA, said: ““For MCA Group, it is most inspiring to be part of projects that help shape the future of communities and countries. We take particular care in helping our generation and those to come to have a brighter planet and a cleaner nature by using natural energy sources. We truly aim at empowering lives for generations.”
This transaction follows the recent announcement7 of EUR238 million of ECA-supported financing for the government of Angola to build new infrastructure, supporting the country’s agricultural industry and transport network, and EUR149 million of Social Loan financing for the Angolan Ministry of Finance to build a new hospital in Kilamba, with a specialist burns ward8. In September 2021, the Bank also announced9 USD1.1 billion financing to develop critical water supply infrastructure to serve the Angolan capital Luanda.
1Data provided by MCA Group
2Data provided by MCA Group
3Data provided by MCA Group
4German Export Credit Agency Euler Hermes: exportkreditgarantien.de/en
5https://www.mcagroup.com/
6These are UN SDGs One, Two, Seven, Eight, Ten, Eleven, Twelve and Thirteen
7https://www.sc.com/uk/2022/12/01/standard-chartered-announces-eur-238-million-of-financing-to-build-agricultural-and-transport-infrastructure-in-angola/
8Standard Chartered announces EUR 149 million Social Loan financing to build a new hospital in Angola | United Kingdom (sc.com)
9https://www.sc.com/en/feature/usd-1bn-financing-project-water-infrastructure-angola/
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For further information please contact:
Claire Newell
Head of Communications for Europe and UK
Standard Chartered Bank
Tel: +44 (0)207 885 8857
Email: Claire.newell@sc.com
Christine Matambo
Head of Corporate Affairs, Brand and Marketing, Zambia and Southern Africa
Standard Chartered Bank Zambia
Tel: +26 021 142 2402
Email: christine.matambo@sc.com
Standard Chartered
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