Treasury bond issue in Mozambique sees high demand

23 August 2012

The issue of 3-year Treasury Bonds totalling 3.15 billion meticals (US$110 million) had demand of almost five times supply and the bonds were listed on the Mozambican Stock Exchange Wednesday, according to the Mozambican press.

The subscription period ran from 15 to 21 August at authorised banks and financial intermediaries and the bonds had an interest rate indexed to that of Treasury Bills (currently set at 6.47 percent for 1 year), in a process led by the National Directorate for the Treasury and executed by the Mozambique Stock Exchange (BVM).

Called “Treasury Bonds 2012” this bond issue “is part of the government’s economic and financial strategy policy, and is an alternative for funding public expenditure and an opportunity for investors and the general public,” according to a statement from the Finance Ministry.

At the end of last year, the Mozambican government issued Treasury Bonds worth 2.6 billion meticals, with a view to covering 4.2 percent of the state budget’s funding needs. (macauhub)