|Approval Date||15 Apr 2020|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The present operation relates to the provision of up to USD 40 million in Lines of Credit (LoC) to Banco Millennium Atlântico, S.A. (“BMA”) Angola. It should support its emerging multi-sectorial portfolio of SMEs and indigenous firms operating predominantly in agriculture, agroindustry and domestic manufacturing. The intervention is designed because the Angolan economy needs AfDB support to diversify its economic base and help it transition away from its current overdependence on imported food and manufactured goods. The project is two senior debt instruments for on-lending to preagreed categories of eligible subprojects i.e. a Line of Credit with a 7-year maturity and 2-year grace period on principal repayment. The transaction will be the Bank’s third support to the financial sector in Angola and the second of such being an NSO. It will provide much needed USD-denominated countercyclical liquidity to support economic diversification and milden the impact of shocks due to flailing oil prices on the international markets. BMA has presented a diversified pipeline of deals in the agricultural sector including projects relating to fruits and legumes production, fishing, grain crops as well as various forms of food processing to replace importation and potentially establish a foundation for export to neighboring countries.
The purpose of the Project is to support BMA’s clients projects to expand its agriculture and industry operations, contributing to job creation, inclusive growth and reduction of import dependence.
The direct beneficiary of the operation is "Banco Millennium Atlântico, S.A. (BMA)". The facility will subsequently be on-lent for priority agribusiness (at least 50%) and manufacturing projects. Benefitting sub-projects will to the extent possible include (but not be limited to) SMEs, women and women led business, youth and low income persons.
African Development Bank
|Last Update||18 Oct 2020|