In the current year, the Mozambique Stock Exchange (BVM) has witnessed a total of 12 bond issuances as of Monday, the 14th of August. These bonds have varying maturities, spanning up to ten years, and feature interest rates ranging from 17% to 19%.
The amounts raised through these bond operations have exhibited a notable range. The most recent issuance on August 8 garnered 475 million meticais, while an earlier operation on March 7 achieved a significant sum of 5.9 billion meticais.
Upcoming Bond Issuance and Debt Capacity
Looking forward, the next issuance of Treasury bonds by BVM is anticipated to occur on August 22. It is noteworthy that the government still possesses the potential to access the market for an additional 11.7 billion meticais before the conclusion of the year. This issuance will bring the country’s debt close to reaching 68% of the legal debt limit set by OT (Organismo Técnico).
Domestic Debt Overview
As of March 31, Mozambique’s domestic debt landscape was characterized by a total domestic debt of nearly 295.7 billion meticais. This encompassed both Treasury Bonds and Treasury Bills, which have shorter maturities.
The financial activities on the Mozambique Stock Exchange during 2023 underscore the government’s efforts to manage its debt portfolio and capitalize on the capital market for funding. These actions play a crucial role in shaping the country’s economic trajectory and growth prospects.