Angolan Sovereign Wealth Fund Approves $10M Investment in Minbos Resources

Investment Details

The Fundo Soberano de Angola (FSDEA) has confirmed its Board's approval for a US$10 million investment in Minbos Resources Limited. This strategic investment will support the construction of the Cabinda Phosphate Fertilizer Project (CPFP). The investment will be made at the greater of A$0.08 per Minbos share or the volume-weighted average price for Minbos shares for the 10 days immediately prior to the execution of definitive transaction documents.

FSDEA completed its due diligence in cooperation with the Industrial Development Corporation of South Africa Limited (IDC). The investment will enable Minbos to meet IDC's condition precedent of raising $11 million for equity funding to support the development of the CPFP. Minbos expects to finalize the balance of IDC's conditions precedent for the $14 million construction funding provided by IDC in the coming weeks.

Statements from Key Figures

Managing Director Lindsay Reed expressed satisfaction with FSDEA's decision, stating, 'It is pleasing that the Fundo Soberano de Angola will both assist and benefit in the development of agricultural initiatives that will alleviate poverty, improve food security, and broaden the economy.' Reed emphasized that the Sovereign Wealth Fund and IDC share the same interest in developing the CPFP for domestic and export sales, which will strengthen CPFP's financials and manage customer risk profiles.

Snr Armando Manuel, Chairman of FSDEA, commented, 'Our board members have carefully reviewed your proposal and agreed that this investment will strategically enhance our profitability prospects. This decision demonstrates our commitment to the development of Angola as a country, specifically in key sectors that contribute to the diversification of the economy. We look forward to a successful partnership and are enthusiastic about the project.'

About FSDEA

The Angola Sovereign Fund, abbreviated as FSDEA, is a public institution with legal personality and administrative, financial, and patrimonial autonomy. Created under Presidential Decree No. 48/11, FSDEA specializes in strategic investments in financial markets and alternative assets. The fund aims to maximize long-term returns, preserve capital, and support Angola's sustainable socio-economic growth through investments in strategic sectors.

FSDEA has allocated $250 million to the agricultural sector, aiming to generate economic growth in the next 3-5 years. Agriculture is one of the most promising commercial sectors in Angola and has been a primary focus of foreign direct investment in the region. FSDEA expects its investments in agriculture to contribute significantly to economic growth in Angola and other regions of the continent through increased revenue from this activity.