The Mozambican government has formally inaugurated an exchange offer for its defaulted 2023 Eurobond on Tuesday, seeking the consent of bondholders for a restructuring that would ease pressure on its strained public finances.
Mozambique said in May it had agreed a restructuring deal “in principle” with the majority of the holders of the dollar-denominated bond, one of the instruments at the centre of a hidden debt scandal that triggered a currency collapse.
According to Mozambique, in the exchange offer, settlement of restructuring of the bond is expected to occur on Sept. 30 if the offer is approved by at least 75 per cent of bondholders.
