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UPDATE 2-Mozambique says Eurobond restructuring a relief for its budget


Reuters
Updated: 08-11-2018 15:15 IST
Mozambique's agreement with the bulk of its creditors to restructure a $726.5 million Eurobond was "a relief for the budget", Finance Minister Adriano Maleiane said on Thursday.

Mozambique said on Tuesday it had struck an agreement with the bulk of its creditors to restructure the Eurobond, including extending maturities and sharing future revenues from huge offshore gas projects.

Under the deal, Mozambique would issue a new $900 million Eurobond maturing in 2033 with a coupon of 5.875 percent - just over half what the current outstanding bond was designed to pay in interest.

"It's a relief for the budget until the time we get additional revenue," he told a business conference in Maputo.

"Our priority as government is we need markets to trust Mozambique, we need bondholders to be on board with Mozambique. We are trying to bring a win-win solution."

Maleiane has previously said it was a priority for markets to trust the southern African nation which has been battling to recover from a debt crisis after admitting in 2016 to $1.4 billion of previously undisclosed lending.

The disclosure prompted the IMF and foreign donors to cut off support to Mozambique, triggering a currency collapse and a default on sovereign debt.

"We are still to analyse the terms," Ari Aisen the IMF's resident representative in the southern African nation told the conference, referring to the restructured Eurobond.

"We are going to continue supporting Mozambique in pursue of good governance, transparency and accountability, which are part of a framework required for a stable microeconomic environment." (Editing by James Macharia)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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