London, United Kingdom, 24 Nov – Mozambique plans to issue 2.6 billion meticals (US$98 millon) of five-year Treasury Bonds to fund its budget deficit, the director of operations of the Mozambique Stock Exchange said Wednesday in Maputo.
Speaking to financial news agency Reuters, Bruno Tembe said that the bond issue, which was the largest ever by the Mozambican Treasury, was open to any investor, whether Mozambican or foreign, via retail banks operating in Mozambique.
The issue, which provides an interest rate of 17 percent, will be auctioned between 28 November and 6 December and the interest rate will be fixed for a period of two and a half years.
Tembe also said that this Treasury Bond issue was the first of the year and would be listed on the Mozambique Stock Exchange and added that it was attracting attention from foreign investors, specifically retail banks.
Mozambique, whose economy is expected to grow by 7 percent this year and in 2012, has a credit rating of “B+” from Standard & Poor’s and “B” from Fitch Ratings. (macauhub)