Mozambique’s Dollar Bond Sees Increase Following U.S. Loan Approval

Mozambique’s dollar bond rose nearly 2 cents after the U.S. approved a $5 billion loan for a liquefied natural gas project. The 2031 bond increased by 1.83 cents to 80.94 cents on the dollar. This loan faced delays due to a construction freeze by TotalEnergies prompted by unrest in Cabo Delgado in 2021.

Mozambique’s sovereign dollar bond experienced an increase of nearly 2 cents on March 14, indicating positive market response. According to Tradeweb data, the bond due in 2031 rose by 1.83 cents, reaching a bid of 80.94 cents on the dollar. This uptick came soon after the United States authorized a long-awaited $5 billion loan intended for a liquefied natural gas project.

The U.S. Export-Import Bank had to reauthorize this loan, previously stalled when TotalEnergies halted construction in 2021 due to violent disturbances in the Cabo Delgado region. This situation reflects the important role that international financial support plays in stabilizing Mozambique’s economy and advancing its energy sector, particularly in light of past challenges in the region.

In summary, Mozambique’s dollar bond market showed signs of improvement following the U.S. approval of a significant $5 billion loan for a liquefied natural gas project. The 2031 bond’s increase in value reflects investor confidence amid previous turmoil caused by unrest in the Cabo Delgado region. The swift action by the U.S. Export-Import Bank demonstrates the ongoing international interest in supporting Mozambique’s economic recovery and its crucial energy initiatives.

Original Source: www.marketscreener.com