Mozambique’s Finance Minister, Adriano Maleiane has described the agreement with the bulk of its creditors to restructure a $726.5 million Eurobond as relief for the budget.
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,” the Minister said,
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.