Minbos Signs $12M Banco BAI Loan, Eyes $14M IDC Facility for Cabinda Project

Financing Milestones Propel Cabinda Project

Minbos Resources Limited (ASX:MNB) has announced significant progress in financing and sales for its flagship Cabinda Phosphate Project in Angola. The company has secured a revised US$12 million term loan from Banco BAI, reflecting an updated sales strategy and easing of previous security conditions. This loan is complemented by a completed US$10 million equity investment from the Angolan Sovereign Wealth Fund and a pending US$14 million debt facility from the International Development Corporation (IDC), expected to be drawn down by July 2025.

The Banco BAI loan is structured under new Angolan Central Bank regulations that encourage funding for economic development projects, with a capped interest rate of 7.5%. The involvement of Fundo de Garantia de Crédito (FGC) as a credit guarantor adds further financial robustness, albeit with an additional 2% interest cost to Minbos.

Sales Momentum Builds on Local and Export Fronts

Minbos reports firm sales interest for its phosphate fertilizer product, PRIMEIRO™, both domestically and in niche Atlantic export markets. The company’s sales strategy, led by Chief Strategy & Marketing Officer Rob Newbold, leverages extensive agronomic trials demonstrating PRIMEIRO’s effectiveness in improving crop yields across diverse Angolan soils and crops. This positions the product as a foundational nutrient solution for smallholder farmers and larger commercial operations alike.

PRIMEIRO’s unique local production and tailored formulations, including PRIMEIRO+ blends, are gaining traction as Angola’s agricultural sector evolves. The company’s approach emphasizes collaboration with government bodies, private sector partners, and market channels to foster organized markets and transparent pricing mechanisms, moving away from historically government-dominated fertilizer distribution.

Strategic Vision for Angola’s Agricultural Future

Minbos aims to catalyze Angola’s agricultural renaissance by supporting smallholder farmers and scaling up export-oriented mechanized farms. The company envisions agriculture becoming a more valuable and sustainable pillar of the Angolan economy than oil within a decade. This vision is underpinned by PRIMEIRO’s demonstrated agronomic benefits and a sales strategy that balances local food security with export revenue generation.

Governance enhancements at Minbos’ Angolan subsidiary, including conversion to a Public Limited Company structure, align with lender preferences and signal a commitment to robust corporate oversight. Meanwhile, ongoing negotiations with IDC and Banco BAI will be critical to unlocking the full financing package and advancing project construction and operations.

As Minbos navigates these financing and market development milestones, the company is well positioned to transform phosphate fertilizer supply in Angola, with potential ripple effects across the region’s agricultural productivity and economic diversification.