Mozambique again misses coupon on 10½% notes, aims to restructure

New York, July 18 – Mozambique did not make the coupon payment due Tuesday on its $726,524,000 of 10½% notes due 2023.

The sovereign’s ministry of economy and finance said in a news release that “the challenging macroeconomic and fiscal situation of the republic has severely affected the country’s public finances.”

As a result, it does not have enough debt payment capacity to make the interest payment.

Mozambique previously missed the $59.76 million payment due Jan. 18 on the 10½% notes.

In Tuesday’s announcement, Mozambique said its government is “committed to finding a consensual and collaborative resolution to the current financial crisis through dialogue with the holders of its direct and guaranteed external commercial obligations.

“It will be critical that any solution is based upon a realistic appraisal of the republic’s capacity to pay, while at the same time is respectful of the interests of the republic’s international investors.

“The objective in the debt restructuring process will be to establish an external commercial debt profile that is credible, sustainable and appropriate in light of the critical development needs of the country.”

Mozambique is being advised by White & Case LLP and Lazard Freres.

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