This week, Mozambique secured 5.727 billion meticais (around 82 million euros) through an internal stock market issuance of Treasury Bonds with a five-year term, according to official data.
The Mozambique Stock Exchange (BVM) reported that the operation took place on Monday, with a demand-to-supply ratio of 89.54% from Specialized Treasury Bond Operators, resulting in the full allocation of the requested amount.
This is the 11th Treasury Bond issuance in 2024, with authorization to place up to 6.396 billion meticais (about 91.6 million euros) at a fixed nominal interest rate of 14.70%. The issuance is part of an exchange process tied to the 10th Treasury Bond issue from 2020.
The Bank of Mozambique has acknowledged increasing pressure from the state’s internal debt, which has surged by 90.3 billion meticais (1.269 billion euros) in 2024 alone.
“Domestic public debt pressure remains high. Excluding loans, leases, and outstanding liabilities, the domestic public debt now stands at 402.7 billion meticais (approximately 5.659 billion euros),” stated a report following the Monetary Policy Committee (CPMO) meeting on September 30.
The report further noted that the current internal debt level marks an increase of 90.3 billion meticais since December 2023. By May 2024, Mozambique’s domestic public debt had reached 364.251 billion meticais (5.117 billion euros), showing an increase of 730 million euros within the first five months of the year, according to previous data from the central bank.