Mozambique’s dollar bond gained nearly 2 cents after the U.S. approved a $5 billion loan for a liquefied natural gas project. The 2031 bond bid rose to 80.94 cents on the dollar. The approval followed a delay due to construction halts amid unrest in Cabo Delgado.
On March 14, Mozambique’s sovereign dollar bond experienced a rise of just under 2 cents, as indicated by Tradeweb data. This increase coincided with the United States’ approval of a long-pending $5 billion loan aimed at advancing a liquefied natural gas project crucial to the country’s economy. Specifically, the 2031 bond increased by 1.83 cents to a bid of 80.94 cents on the dollar.
The U.S. Export-Import Bank’s loan approval was essential, as it had required re-approval after TotalEnergies halted construction on the liquefied natural gas project in 2021. This decision followed the onset of violent unrest in the northern Cabo Delgado region, which impacted the development and stability of the project significantly.
In summary, Mozambique’s dollar bond has shown a positive response to the U.S. approval of a significant loan for a liquefied natural gas project. The bond’s increase reflects market confidence following an extended delay and challenges posed by unrest in Cabo Delgado. The loan’s re-approval by the U.S. Export-Import Bank marks a critical step forward for this development initiative.
Original Source: www.marketscreener.com
