GovWire

• The UK government has issued guarantees which secureStandard Chartered Banktoarrangefinancing fora415 million contract betweenexporterInnovoGroupandAngola

• The largest-ever sovereign transaction which UKEF hasclosed in Sub-Saharan Africa, thisenables the delivery of critical infrastructure in Benguela Province, a coastal region of Angola vulnerable to flooding and poordrainage

• Over a third of the contract more than 140 million will be spent on UK goods and services, withBritishand Angolan communities alike to benefit from thedeal

The UKhas issued loan guarantees which allowBritish exporterInnovoGroup to secure a415 million contractto delivercritical infrastructure projects in Benguela Province,a regioninthe west ofAngolaadjacent to the Atlantic Ocean.

The support has been issued throughUK Export Finance (UKEF) the governments export credit agencyand means thatprojects willnowgo ahead to improve the regionspotablewatersupply, storm drainage, sanitation, roads, public lighting, and commercial infrastructure.This includes the municipalities of Benguela, Baa Farta, Catumbela and Lobito.

Comprising 23 individualprojects, the programmeis expectedto support 11,000localjobsacrossa range of sectors includingconstructionover the next five years.

During theUNs COP28 climate change summit, UKEF announces the deal as an example of the role played by international trade in supportingglobal adaptation against climate change and extreme weather.

Benguela Province is a coastal region vulnerable to flooding and poor drainage.UKEFssupportallows the Angolan government to financeInnovoGroupscontractusing funds arranged by Standard Chartered Bank, asStructuring andCoordinatingBank, Bookrunnerand MandatedLeadArranger.

This allowstheBenguela province to benefit fromnewwater supplies,stormwater channelsanddrainage networksaimed at reducing the risk and impact of floodingand other climate related events.

The projectswillgenerate a direct spend of over 140 million on UK exportswhich are expected to support a watersupply and drainage projects,road rehabilitationand community facilities.

Andrew Mitchell,UKMinister for Development and Africa said:

This ground-breaking deal will provide critical infrastructure that will change lives and reaffirm our commitment to building mutually beneficial partnerships as we prepare for the UK-African Investment Summit next year.

Our partnership with Angola is long-standing, and this funding will provide huge benefits to the people of Benguela province, including new water supplies and protection from the harsh impacts of climate related events including flooding.

By teaming up to tackle climate change now, we are creating a more resilient and sustainable future- it is clear that we can go far when we go together.

Paul Woodman, CEO of Innovo Projects,said:

We are delighted to have secured this most important project that will have a hugely positive impact for the people and communities of the Benguela province, as well as making the region more resilient to the impacts of climate change. This is the third contract we have secured in Angola with the support ofUK ExportFinanceand we would like to thank all stakeholders, including the Ministry of Public Works & Housing, for their cooperation in bringing this project to fruition.

Faruq Muhammad, Global Head ofStructured Export Financeat Standard Chartered Bank, said:

Were proud to bethe Angolan governmentslong-standing banking partneronce moreto bring aboutsocial, cultural and economicpositive changefor thousands of people in theBenguela Province, with improved infrastructure, water supply and building renovations.

InnovoGroupwill also deliver projects which support the development of the local economy, includingroad rehabilitation works, renovation of historic buildings, andtheconstruction of a fish market in Benguela City fortraderswho currentlywork outdoors without refrigeration.

Thisfollows the export credit agencys announcement in January of support for Innovo (then trading as ASGC UK) to build aspecialistburns hospital inAngolas capital city, Luanda.

Contact