Government of Mozambique concludes Ematum’s debt restructuring

6 April 2016

The government of Mozambique has completed restructuring of the debt taken on to finance Mozambican tuna company Ematum, which was converted from commercial to sovereign debt held by the state, the government spokesman saidMonday.

Government spokesman and Deputy Health Minister Mouzinho Saide, said after a Cabinet meeting that the agreement signed with investment banks Credit Suisse and Russia’s VTB Capital extends the debt repayment period for two years and reduces the annual amount payable.

The new agreement extends the repayment period from five to seven years and reduces the amount that the Mozambican state will pay each year in two semiannual equal installments from US$200 million to US$76 million, according to statements from the deputy minister cited by the Mozambican press.

Ematum ordered 24 fishing vessels from a shipyard in the city of Cherbourg, France. These included line fishing boats, trawlers and six patrol boats. In order to do this it took on two loans – a US$500 million loan from Credit Suisse and US$350 million from the VTB Capital. This debt was endorsed by the government of Mozambique.

Of the US$850 million, US$350 million were used to purchase fishing vessels and the remaining US$500 million, under the direct responsibility of the state, was used to buy radar system equipment, satellite communications, ground facilities, technology transfer and training.

The shareholders of Ematum are Mozambican state stake-holding company IGPE with 34 percent and fishing company Emopesca (33 percent) and GIPS (33 percent), which is 100 percent owned by the Social Services of the State Information and Security Agency (SISE). (macauhub/MZ)