The Mozambican government is once more turning to domestic debt to raise funds, by issuing high interest bearing treasury bonds.
The chairperson of the Mozambican Stock Exchange (BVM), Jussub Nurmamade, told AIM on Thursday that the government has issued 2.5 million treasury bonds, each with a face value of 100,000 meticais.
The total issue thus amounts to 250 billion meticais (equivalent to about 10 million US dollars).
The bonds became available on 17 May, and will be sold to the public until 3 June. Interest is paid on the bonds every six months, and they mature in five years. The interest payments are exempt from income tax.
The interest for the first payment (due on 8 December) is set at 15 per cent. For future payments the interest rate is variable, and will be indexed to the average of the rates used in the previous six sessions of the Bank of Mozambique's transactions of its own short term bonds, to which a margin of one per cent will be added.
Investors are promised that the interest on the Treasury Bonds will always be higher than the interest offered by any commercial bank on deposit accounts.
The bonds will be sold to the public via the commercial banks, and any that are not purchased will be taken up by the banks themselves.
Nurmamade said nine of the 12 banks invited to bid had made offers in total amounting to 1,410 billion meticais - over five times the total value of the bonds. But the banks will only be able to buy for themselves whatever is left over after the period of sale to the public.
The result of the bond sale will be announced on 7 June, and the following day they will be quoted on the BVM.
Fonte: AIM
