A delegation from Mozambique will meet this week with investors in the United Kingdom and the United States in an attempt to gain support for the restructuring of debt totalling US$697 million of Mozambican tuna company Ematum, financial news agency Bloomberg reported.
The delegation, headed by Finance Minister Adriano Maleiane, met Monday in London with bondholders of a total if US$850 million, part of which has already been paid back, and are expected to hold a similar meeting Tuesday in New York.
The original loan was placed in 2013 by Credit Suisse and VTB Russia, which have now been hired to seek approval from investors for the restructuring process.
Ahead of a payment that was to be made Friday, the two banks have proposed conversion of bonds maturing in 2020, of which US$697 million has yet to be paid at a coupon of 6.305 percent, into other bonds maturing in 2023.
However, Fitch Ratings placed the credit rating on Mozambique’s debt under credit watch because of the proposal to restructure Ematum’s debt, which according to Fitch is a default on payments. (macauhub/MO)