Mozambique’s dollar bond rose nearly 2 cents following the U.S. approval of a $5 billion liquefied natural gas project loan. The bond maturing in 2031 bid at 80.94 cents, boosted by renewed interest post-construction freeze due to unrest in Cabo Delgado. The loan re-approval signifies progress on the project.
On March 14, Mozambique’s sovereign dollar bond saw an increase of nearly 2 cents, according to Tradeweb data. This uptick followed the news that the United States had cleared a long-awaited $5 billion loan aimed at supporting a liquefied natural gas project. Specifically, the bond maturing in 2031 rose by 1.83 cents, bringing the bid price to 80.94 cents on the dollar.
This loan from the U.S. Export-Import Bank required re-approval after TotalEnergies halted project construction in 2021 due to violent disturbances in the northern Cabo Delgado region of Mozambique. The approval of this loan underscores a renewed effort to stabilize and advance energy developments in the country.
The approval of the $5 billion loan by the U.S. is a significant boost for Mozambique’s LNG project and positively impacted its sovereign dollar bond. The rise in the bond’s value indicates market optimism following the clearance, which follows prior obstacles including project delays caused by unrest. Continued development in Cabo Delgado could further enhance Mozambique’s energy sector and economic outlook.
Original Source: www.marketscreener.com
