Mozambican bank Moza Banco issued a commercial paper – the first of its kind by a company listed on the Mozambican Stock Exchange – the bank said in a statement issued in Maputo.

The issue, in the amount of 700 million meticals (US$23 million), pays interest at the same rate as the permanent liquidity facility of the Bank of Mozambique – currently 9.5 percent – and has a maturity of six months.

Inaete Merali, chairman of Moza Banco’s Executive Commission said that demand for the paper had exceeded supply by 45 percent, which was a sign of the level of interest in this type of investment.

Commercial papers are private short term debt securities that allow issuing companies to finance themselves directly on the market, and are a monetary instrument focused on financing large companies.

The shareholders of Moza Banco are Moçambique Capitais SA (50.1 percent), BES África (of Portuguese bank Banco Espírito Santo – 21.1 percent) and Geocapital, an investment company with Portuguese and Macau capital (24.5 percent). (macauhub)