Companhia de Moçambique issues 2 million bonds

3 October 2013

Demand outstripped supply more than three-fold when Companhia de Moçambique of the Entreposto group, a Portuguese-owned Mozambican group, sold 2 million bonds on the Mozambique Stock Exchange (BVM), according to the final results of the operation.

According to figures published by the BVM, the 2 million bonds issued at a unit price of 100 meticals received 217 buy orders for over 7 million bonds.

Organised by Moza Banco, the Companhia de Moçambique bond issue, which was the first by a private non-financial company on BVM, has a four-year maturity, with half-yearly payments at a fixed rate of 13 percent in the first two years, and in the other two years the interest rate is pegged to the Bank of Mozambique’s permanent facility rate with an additional 4 percentage points.

The issue, called “pioneering” by the vice president of Entreposto Group, José Cardoso, earned the group 200 million meticals. This cash will finance the group’s investment plan, which is focused on its network of delegations in Mozambique and on continued expansion of its real estate business.

The Companhia de Moçambique 2013 bonds will now be listed on the Mozambique Stock exchange, to be traded on the secondary market. (macauhub)