The Mozambique Stock Exchange (BVM) revealed on Thursday, 11 January, that the state has placed 2 billion meticals (29.5 million euros) in the first issue of 2024 Treasury Bonds (OT), with demand far outstripping supply.
According to the institution, the operation took place on Wednesday (10) and, according to the bids submitted by the Specialised Treasury Bond Operators, the overall demand for the issue was 2.7 billion meticals (38.8 million euros), with the demand to supply ratio being 123.61%, with a minimum rate of 17.25% and a maximum of 21%, for a maturity of five years.
Data compiled by the Mozambique Stock Exchange shows that in 2023 there were 14 issues, including reopenings of scheduled issues, with maturities of up to ten years and interest rates ranging from 17% to 19%, having reached almost 80% of the legal debt limit per OT.
The Mozambican government previously approved the so-called Public Debt Management Strategy 2023-26, 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 highly concessional loans for profitable projects, while in terms of domestic debt, the priority will be to issue long-maturity treasury bonds”.
