Angola’s state-owned oil company Sonangol has raised $2.25 billion, its largest ever oil-backed structured trade financing transaction, lawyers advising the company said.

Angola is raising money in a drive to double oil production to around two million barrels per day (bpd) by 2008. Angola already churns out more oil in sub-Saharan Africa than any other country except Nigeria.
The financing was more than double financing raised by Sonangol in a similar transaction last year, said law firm Norton Rose. The transaction allows Sonangol increased flexibility in its crude oil trading operation, the statement said. Pricing, identity of oil purchasers, sales and payment terms are all matters for Sonangol to decide, without lender constraint, it added.
“Unlike any previous Sonangol financing which has involved derivatives support, completion of the hedging requirement is not required as a condition precedent to funding,” the statement said.