Completed Mixed AidData Chinese Aid

ICBC reprofiles $3 billion of outstanding debt for Government of Angola in 2020 and 2021

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Government of Angola
Country	Angola
Start Date	Jan 01, 2020
End Date	May 08, 2031
Duration	4,145 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`95416`

Grant Description

In 2020 and 2021, the Industrial and Commercial Bank of China (ICBC) and the Government of Angola agreed to reprofile multiple loan agreements that they had previously signed.

The parties reportedly agreed to a (i) a three-year deferral of principal payments; and (ii) repayment of deferred principal falling due in 2020H2–2023H1 over seven years after the grace period, with some additional modest relief of principal in 2024–25.

This debt reprofiling likely applied to the following ICBC loans that the Government of Angola previously contracted: (1) A $837.47 million loan for 750MW Soyo I Combined Cycle Power Plant Construction Project (captured via Record ID#43795) (2) ICBC's contribution of $1.239 billion to a $4.1 billion syndicated buyer's credit loan for 2171 MW Caculo Cabaça Dam and Transmission Line Project (captured via Record ID#67108) Further loans are likely to have been affected; this issue requires further investigation.

The Government of Angola’s debt outstanding under various loan agreements with ICBC was $3 billion as of December 31, 2021.

The Government of Angola and China Development Bank (CDB) also reprofiled multiple loans in 2020, and according to the IMF, the reprofiling agreements with CDB and ICBC jointly produced cash flow savings worth $1 billion in 2020, $1.9 billion in 2021, $1.8 billion in 2022, and $200 million in 2023.

📋 Staff Comments

1. According to SAIS-CARI Briefing Paper #9 (https://static1.squarespace.com/static/5652847de4b033f56d2bdc29/t/64303cd252cc4045dafc811f/1680882899126/Briefing+Paper+9+-+China+and+DSSI+-+April+2023+-+V5.pdf), which was published in April 2023, 'ICBC agreed to extend the maturities of loans that fell due over a three-year period, between the second half of 2020 and the first half of 2023, with the principal payments spread out over seven subsequent years. However, Angola would still need to pay interest during the suspension.'2. Based on the observable characteristics of the loans that are identified in the 'description' field, these loans had scheduled principal repayments between July 1, 2020 to June 30, 2023. This would make them eligible for this reprofiling. This issue merits further investigation.

📚 Sources & References

PROGRAM DOCUMENT FOR A PROPOSED DEVELOPMENT POLICY LOAN IN THE AMOUNT OF US$700 MILLION TO THE REPUBLIC OF ANGOLA
THE REPUBLIC OF ANGOLA Global Medium Term Note Programme
China inclui dívida comercial e dá moratórias a 21,7 mil milhões USD
W o r l d B a n k S e e s P r i v a t e L e n d e r s J o i n i n g G - 2 0 i n D e b t R e l i e f
Angola negotiates $6.2 billion debt relief from creditors: IMF
PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR ANGOLA
Global Medium Term Note Programme
Integrating China into Multilateral Debt Relief: Progress and Problems in the G20 DSSI Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

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Government of Angola

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