1st Series of 2010 Mozambican Treasury Bonds Bond, totally subscribed

29 September 2010

Maputo, Mozambique, 29 Sept – The first series of 2010 Mozambican Treasury Bonds has been totally subscribed and takers have paid out the 1.5 billion meticals (around US$41 million) expected, the director of operation of the Mozambican Stock Exchange said Tuesday in Maputo.

Speaking to newspaper O País, Bruno Tembe also said that of that amount 1.462 billion meticals had been provided by financial institutions (banks and others) and the remainder, around 37 million meticals, by the general public.

Tembe said that the issue of the second series, initially set for September of this year, had been delayed due to “a lack of liquidity on the market.”

Tembe also said that the Mozambican Stock Exchange, the Finance Ministry and the Bank of Mozambique were studying the criteria for the second series, as the amount was higher – 2 billion meticals.

The subscription period for the first issue of the 2010 Treasury Bonds, t be paid back on 1 September, 2015, was between 16 and 30 August, and its interest rate is 15 percent.

The issue of treasury bonds had been the alternative used by the Mozambican government to finance its activities, due to the reluctance of the International Monetary Fund (IMF) and World Bank in allowing it to take on more foreign debt. (macauhub)