Mozambican oil and gas company Empresa Petróleos de Moçambique issues country’s first commercial paper

16 September 2011

Maputo, Mozambique, 16 Sept – The first commercial paper issued in Mozambique – Petromoc 2011 Commercial Paper – has been listed on the Mozambique Stock Exchange (BVM), BVM’s chief executive told Mozambican newspaper Notícias.

Commercial paper is a short term financial security issued by companies that allows them to fund their immediate cash requirements at a lower cost than if they were to use the traditional financial resources such as bank loans.

The issuing body, state company Petróleos de Moçambique (Petromoc), thus became the first company to issue commercial paper in Mozambique since this financial instrument was introduced in the country in 2005.

The issue of Petromoc’s 2011 commercial paper was organised by Standard Bank (Moçambique).

The chief executive of BVM, João Matsinhe said that, under the terms of the government decree that authorised commercial paper, it could be issued by state and private companies or institutions.

The fundamental requirement for issuing commercial paper is the legal certification of accounts by an independent auditor authorised by the Finance Minister. (macauhub)