Mozambique bondholders want a piece of the country’s future gas revenue
The group of bondholders is said to have asked the government to pay them portions of future natural gas revenue as part of a restructuring of Eurobonds
A group of Mozambique bondholders proposed the government pay them portions of future natural gas revenue as part of a restructuring of the nation’s Eurobonds, according to two people familiar with the discussions. The so-called Global Group of Mozambique’s Bondholders (GGMB) formally made the proposal to the southeast African nation, which also includes cash-flow relief until 2023, said the people who asked not to be identified because the plan has not been announced publicly. The two main points of the proposal include: • Instruments linked to fiscal revenue from gas production with a sliding scale, in which the government will always retain at least 97% of revenue. This includes royalties. • Cash-flow relief to the government between now and 2023, when the $727m Eurobonds fall due, of almost $1bn. This includes both principal and interest payments and would equate to about 80% of what would be owed over the next five years. Mozambique’s Eurobonds due in 2023 gained as much as 1%,...
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