UPDATE 1-Sonae balance sheet solid, debt easing- board member

* Says 2012 financing needs practically covered

* Angola operation awaits regulator OK, sees 3-5 hypermarket launch 2013 (adds quotes, details)

By Shrikesh Laxmidas and Sergio Goncalves

CASCAIS, Portugal, Sept 22 (Reuters) - Portuguese retailer Sonae has a solid balance sheet and expects to end 2011 with a debt level lower than 2010's 3 billion euros, with its funding needs covered for this year and practically covered for 2012, board member Luis Reis said on Thursday.

"Financing needs for 2012 ... are practically covered and when we look at Sonae in a two- to three-year perspective, it's a balance sheet that leaves us extremely tranquil, even under a conservative analysis of Portugal's macroeconomic evolution," Reis told reporters on the sidelines of a conference.

He said that with the Portuguese market under pressure due to austerity measures, Sonae expects to launch its operation in Angola in 2013, opening up to 5 hypermarkets in the capital Luanda in the first phase, adding that the project is awaiting approval from Angolan investment authority ANIP.

Sonae in April announced a partnership for the Angolan market, taking 49 percent in a joint venture with Condis, controlled by Isabel dos Santos -- daughter of the country's long-serving President Jose Eduardo dos Santos.

Reis said Sonae will mainly operate the hypermarkets rather than invest in the real estate for the stores, and it hopes to open a logistics centre and create ties to the local agricultural sector to gain competitive advantage.

Angola's food retail market has attracted interest from major players, with U.S. retail giant Wal-Mart planning to enter one of Africa's fastest-growing economies through its Massmart unit.

South African retailers Woolworths and Pick n Pay are also eyeing a presence in the country.

"I think Angolan market is already competitive but will become even more competitive. We see that our capabilities, and those of our partner, can create the conditions for a successful project," Reis said.

Regarding Sonae's telecoms unit Sonaecom , Reis said the company has not been informed by France Telecom of any plans to sell its 20 percent stake in the Portuguese operator. Media reports earlier this month said France Telecom wanted to sell minority stakes in some firms quickly. (Editing by Andrei Khalip)