The Mozambique Stock Exchange (BVM) announced today that the Mozambican state has successfully raised 2 billion meticais (equivalent to 29.5 million euros) in its first issue of 2024 Treasury Bonds (OT).
According to BVM, overall demand for the issue reached 2.7 billion meticais (around 38.8 million euros), resulting in a demand/supply ratio of 123.61%. The bids from Specialized Treasury Bond Operators reflected a minimum rate of 17.25% and a maximum of 21%, with a maturity of five years.
The data compiled by the Mozambique Stock Exchange shows that, throughout 2023, 14 Treasury Bond issues were made, including reopenings of scheduled issues. These issues had maturities of up to ten years and carried interest rates ranging from 17% to 19%. This effort resulted in approximately 80% of the legal debt limit being used for Treasury Bonds.
Earlier, the Mozambican government approved the Public Debt Management Strategy 2023-26, which aims to guide debt options in the coming years. The aim is to “tighten the limits for debt sustainability indicators when contracting credits”, as stated by the authorities.
The successful issue of Treasury Bonds reflects investor confidence in the Mozambican market and the government’s ability to meet its financial obligations. This move also provides an opportunity for the state to finance its development projects and programs, thus contributing to the country’s economic growth.
