Mozambican creditors approve proposed restructuring of Eurobond issue

10 September 2019

The creditors of the Mozambican tuna company, Ematum, issue of Eurobonds have approved almost all of the restructuring proposal presented by the Government of Mozambique, according to an official statement.

The statement from the Ministry of Economy and Finance revealed that 99.50% of the US$726.5 million holders of bonds from that issue had approved the memorandum of consent on debt restructuring by the deadline of 6 September.

The creditors’ approval, which would have to be signed by at least 75% of the bondholders, was made through a Written Bondholder Deliberation, including the Global Group of Bondholders of Mozambique, which holds approximately 68% of those securities.

The request announced in late August came after the Constitutional Council declared the state guarantee provided for 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)