Mozambican government invites more Ematum Eurobond holders to accept restructuring proposal

28 August 2019

The Mozambican government has invited more holders of Eurobonds issued by the Mozambican tuna company Ematum to accept the loan restructuring proposal agreed in May with 60% of lenders, according to an official statement.

In a statement published on Tuesday on the Ministry of Economy and Finance website, entitled “Launch of Request for Consent on Outstanding Bonds,” the government makes another request to creditors of Ematum sovereign debt securities to accept the debt being settled by 2023.

The same document said the purpose of the consent request was to reach an agreement with at least 75% of Eurobond holders, “and the restructuring is expected to be settled on 30 September 2019.”

This request comes after the Constitutional Council declared the guarantee given on the Ematum loan to be unconstitutional and void.

Although it is an irrevocable decision, the government has opted to continue the restructuring process of this bond issue, which had already been the subject of a previous restructuring process, and one of its main arguments was the need to restore relations with the international financial community.

The debt in question amounts to US$726.524 million at an interest rate of 10.5% and maturity in 2023 agreed on 31 May this year with 60% of creditors.  (Macauhub)