Mozambique’s dollar bond increased nearly 2 cents after the U.S. approved a delayed $5 billion loan for an LNG project. The bond, maturing in 2031, was bid at 80.94 cents on the dollar. The U.S. Export-Import Bank’s loan required re-approval after TotalEnergies suspended construction due to unrest in Cabo Delgado.
On March 14, 2023, Mozambique’s sovereign dollar bond experienced an increase of nearly 2 cents, according to data from Tradeweb. This increase followed the United States’ approval of a $5 billion loan intended for a liquefied natural gas (LNG) project in the country.
Specifically, the bond maturing in 2031 saw a rise of 1.83 cents, bringing its bid to 80.94 cents on the dollar. This financial development comes after the U.S. Export-Import Bank required a re-approval for the loan due to TotalEnergies’ suspension of project construction in 2021, which was prompted by violent unrest in the Cabo Delgado region of northern Mozambique.
The approval of the $5 billion loan by the U.S. Export-Import Bank has positively influenced Mozambique’s sovereign dollar bond market. Following this announcement, the bond maturing in 2031 demonstrated an uptick, evidencing the potential impact of international financial support on the nation’s economic prospects, particularly in the face of challenges such as regional unrest.
Original Source: www.marketscreener.com
