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Loan Insurance for Export of Submarine Cable System to Republic of Angola


March 31, 2016

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for a loan extended to Banco de Desenvolvimento de Angola by a Japanese commercial bank to finance Angola Cables S.A., an international wholesale carrier in Republic of Angola, aimed for the purchase of submarine cable system manufactured by NEC Corporation.

The project plans to install a submarine cable system extending to a total length of approximately 6,200 km from Fortaleza, Brazil to Sangano Beach in Angola, and upon completion, it will open up a new route from various African countries to North America via Brazil. This will be the first submarine cable system to run across the south Atlantic to connect the two continents, Africa and South America, and is expected to contribute greatly in bringing more diversification to the industries in Angola, which now rely highly on oil-related industry.

The loan will be made in the form of co-financing, performed jointly by Sumitomo Mitsui Banking Corporation (SMBC) and Japan Bank for International Cooperation (JBIC), and NEXI will undertake the insurance to cover the loan portion executed by SMBC.

With its project formation know-hows and risk-taking functions backed with various financial tools, NEXI will continue to offer financial support to the Japanese industry, so as to maintain and improve its international competitiveness.


Reference
Insured Sumitomo Mitsui Banking Corporation
Covered risks Political Risk 100%, Commercial Risk 95%
Tenor Approx. 12 years
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