Now Reading
Mozambique Issues 51.2M Meticals in Treasury Bonds as Demand Exceeds Supply

Mozambique Issues 51.2M Meticals in Treasury Bonds as Demand Exceeds Supply

On Tuesday Mozambique placed 3,509 million meticals (51.2 million euros) in a single issue of Treasury Bonds, through the Mozambique Stock Exchange (BVM), with demand exceeding supply.

At issue was an operation for direct subscription by Specialised Treasury Bond Operators (OEOT) of up to 3,509 million meticals – which was completely filled – relating to the eighth series of 2023 Treasury Bonds, the first operation of its kind in September.

The overall demand for this issue was 4,369 million meticals (63.8 million euros), “with a demand to supply ratio of 124.51%, with a minimum rate of 16.000% and a maximum of 21.000%”, in an operation with a maturity of 10 years and a fixed interest rate of 16%.

Since January, Mozambique has placed 28,910 million meticals (422.3 million euros) in Treasury Bonds through the stock exchange, with the legal availability to issue a further 7,738 million meticals (113 million euros) by the end of the year.

According to decree 14/2023, issued by the Ministry of Economy and Finance on 18 January, the issue of Treasury Bonds (OT) – public debt issued with longer maturities – for this year provides for an overall limit of 36,648 million meticals (526.4 million euros), preferably in two monthly issues, until 5 December.

Data from the Mozambique Stock Exchange compiled by Lusa indicates that 14 issues have already been made – including reopenings of scheduled issues – in 2023, with maturities of up to 10 years and interest ranging from 17 to 19 per cent, thus reaching almost 80 per cent of the legal limit for OT debt for this year.

The amounts raised in each operation ranged from 475 million meticais (6.8 million euros) on 8 August to the 5,946 million meticais (85.3 million euros) raised in the operation held on 7 March.

The Mozambican government previously approved the so-called Public Debt Management Strategy 2023-2026, which guides debt options over the next few years and aims to “bring limits to debt sustainability indicators in credit contraction”.

In terms of external debt, it plans to “prioritise financing in the form of donations” and “in the form of highly concessional loans for profitable projects”, while in terms of domestic debt, the priority is to “prioritise the issue of long maturity treasury bonds”.

See Also



Scroll To Top

We have detected that you are using AdBlock Plus or other adblocking software which is causing you to not be able to view 360 Mozambique in its entirety.

Please add to your adblocker’s whitelist or disable it by refreshing afterwards so you can view the site.