The five-year debt will pay an interest margin of more than 300 basis points, or 3 percentage points, greater than the London interbank offered rate, said the people, who asked not to be identified because the terms are private. Additional lenders will join the deal, which is due to be funded at the end of May.
Luanda, Angola-based Sonangol regularly borrows from international banks and obtained a $1.5 billion five-year term loan in September 2012. Standard Chartered was bookrunner of that deal which pays a margin of 350 basis points more than Libor, according to data compiled by Bloomberg.
Joao Rosa Santos, a Luanda-based spokesman for the company, didn’t answer two telephone calls seeking comment on the financing. Telephone calls and e-mails to the company weren’t immediately answered.
Sonangol boosted oil output by 4.5 percent last year and plans to spend $8.8 billion on exploration in the next decade, Francisco de Lemos Jose Maria, chief executive officer of the company, said in February.
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