Mozambique’s Dollar Bond Rises Following U.S. Approval of LNG Loan

Posted On: March 14, 2025
Posted By: Omar Fitzgerald
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On March 14, Mozambique’s dollar bond rose over 2 cents after U.S. approval of a $5 billion LNG loan, crucial for the nation’s economy. The bond reached 81.35 cents on the dollar, following a period of unrest and financial strain. The government is also seeking an IMF bailout as its current program nears its end.

On March 14, Mozambique’s sovereign dollar bond experienced a rise of over two cents, as reported by Tradeweb data. This increase followed the announcement that the United States had approved a long-awaited $5 billion loan intended for a liquefied natural gas project critical for the economic stability of Mozambique. The bond, with a maturity date in 2031, traded at 81.35 cents on the dollar as of 0920 GMT, reflecting an increase of 2.32 cents.

The loan from the U.S. Export-Import Bank needed re-approval due to the suspension of construction by France’s TotalEnergies in 2021, following a significant attack by Islamist insurgents in the Cabo Delgado region. The potential of the vast gas fields remains essential for Mozambique’s economic growth, and the delays have adversely affected government finances, leading to impeded development.

Additionally, the situation has been exacerbated by political unrest following a contentious election last year and the impact of a devastating cyclone in December, which has placed further pressure on state resources. Consequently, the Mozambican government is in discussions with the International Monetary Fund for a potential bailout to succeed its current financial program, which is set to conclude later this year.

In summary, Mozambique’s dollar bond has gained value following the U.S. approval of a significant loan for a crucial LNG project. This development is pivotal for the nation’s economic recovery, alleviating some of the financial strain caused by political unrest and natural disasters. The ongoing dialogues with the IMF for future financial assistance further underscore the importance of these developments in shaping Mozambique’s fiscal landscape.

Original Source: www.marketscreener.com

Omar Fitzgerald

Omar Fitzgerald boasts a rich background in investigative journalism, with a keen focus on social reforms and ethical practices. After earning accolades during his college years, he joined a major news network, where he honed his skills in data journalism and critical analysis. Omar has contributed to high-profile stories that have led to policy changes, showcasing his commitment to justice and truth in reporting. His captivating writing style and meticulous attention to detail have positioned him as a trusted figure in contemporary journalism.