Mozambique launches restructuring offer for 2023 Eurobond, what you need to know

PUBLISHED: Tue, 27 Aug 2019 16:53:29 GMT
Share

JOHANNESBURG (Reuters) – The Mozambican government formally launched an exchange offer for its defaulted 2023 Eurobond on Tuesday, seeking the consent of bondholders for a restructuring that would ease pressure on its strained public finances.

Mozambique said in May it had agreed a restructuring deal “in principle” with the majority of the holders of the dollar-denominated bond, one of the instruments at the centre of a hidden debt scandal that triggered a currency collapse.

In the exchange offer, Mozambique said settlement of the restructuring of the bond was expected to occur on Sept. 30, if the offer was approved by at least 75 percent of bondholders.

Reporting by Alexander Winning and Karin Strohecker; Editing by Alison Williams

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.