africa Banking Economy Finance Government Mozambique

Communique from the Ministry of Economy and Finance of Mozambique announcing agreement in principle with bondholders

Approximate reading time: 3 minutes

Communique

The Ministry of Economy and Finance of the Republic of Mozambique (the “Ministry”) is pleased to announce that it has reached agreement in principle on the key commercial terms of a proposed restructuring transaction relating to Mozambique’s US$726,524,000 10.5 per cent Notes due 2023 (the “Bonds”) with four members of the Global Group of Mozambique Bondholders, being funds managed or advised by Farallon Capital Europe LLP, Greylock Capital Management, LLC, Mangart Capital Advisors SA and Pharo Management LLC (the “Bondholders”).

 

The Bondholders currently own or control approximately 60% of the outstanding Bonds. The agreement in principle reached by the parties, and the support of the Bondholders for the proposed restructuring, is conditional on the parties reaching agreement on mutually satisfactory documentation setting out the detailed terms of the restructuring including implementation, and the Ministry obtaining all necessary approvals, including Parliamentary and government approvals in Mozambique.

Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.