Africa Debt Economy Fish Government Mozambique

Mozambique authorised to pay tuna company debt

The Government of Mozambique already has the authorisations and approvals required by law to repay the debt incurred by Mozambican tuna company Ematum through a US$850 million Eurobond issue, according to the Africa 21 news channel.

The Ministry of Economy and Finance, in a document sent Wednesday to creditors of that portion of sovereign debt amounting to US$726.5 million after two restructurings, also announced, “satisfaction of settlement conditions and confirms that the date of settlement will take place on 30 October 2019 in line with the terms of the Consent Request Memorandum.”

An official statement issued last September said that creditors for the issuance of Ematum Eurobonds approved almost all of the restructuring proposal put forward by the Government of Mozambique.

The statement from the Ministry of Economy and Finance revealed that 99.50% of the US$726.5 million holders of bonds from that issue had approved the memorandum of consent on debt restructuring by the deadline of 6 September.

The creditors’ approval, which would have to be signed by at least 75% of the bondholders, was made through a Written Bondholder Deliberation, including the Global Group of Bondholders of Mozambique, which holds approximately 68% of those securities.

The debt in question amounts to US$726.524 million, and the agreement reached on 31 May this year with 60% of lenders stipulates that the issue will now have an interest rate of 10.5% and maturity in 2023.

A source from the Ministry of Economy and Finance told Mozambican newspaper O País that the first coupon will be paid in March 2020.

Source: Macauhub

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