Mozambique raises €129.5m in third treasury bond exchange auction of 2026

Mozambique this week raised almost 9.562 billion meticais (€129.5 million) through the third 2026 issuance of Treasury bonds under a bond exchange auction, according to information from the Bolsa de Valores de Moçambique (BVM). The operation, designated OT-2026-S3, involved an exchange auction of Treasury bonds (Obrigações do Tesouro, or OTs) issued in 2021 and 2022. The new bonds have a maturity of five years and carry a fixed nominal interest rate of 13.25% throughout the life of the issue, until June 2031, according to the operation’s technical documentation.

According to information from the Mozambique Stock Exchange consulted by Lusa, the issuance was expected to raise up to almost 10.435 billion meticais (€141.3 million). During the first subscription period, the bid-to-offer ratio reached 91.63%. In the second period, reserved for new subscriptions, no participation was recorded.

“The total demand registered during the first subscription period was fully allocated, resulting in the issuance of bonds amounting to 9,561,887,000 meticais,” the BVM said. In April, Mozambique raised almost 11.3 billion meticais (€153 million) through its second Treasury bond issuance of 2026, another liability exchange auction conducted through the BVM. The operation, designated OT-2026-S2, closed on April 24 and involved a liability exchange auction.

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It has a maturity of three years and carries a fixed nominal interest rate of 13.25% until April 2029. Earlier, Mozambique had raised 1.630 billion meticais (€22 million) through its first Treasury bond issuance of 2026, exchanging Treasury bonds issued in 2021. The OT-2026-S1 operation closed on February 24, with a maturity of three years, and was intended to exchange the OT-2021-S2 issue.

Under that exchange, the Mozambican state will pay a fixed nominal interest rate of 13.5% until the bond matures on February 24, 2029, according to the technical documentation for the operation. Mozambique plans to carry out 18 Treasury bond issuances in 2026, totalling 34.2 billion meticais (€456.6 million), as well as nine exchange operations involving bond issues maturing this year, worth 45.7 billion meticais (€610 million). According to a decree issued by the Ministry of Finance and previously reported by Lusa, the 2026 Treasury bond issuances will be conducted through the Mozambique Stock Exchange.

“Under this decree, the issuer may carry out neutral operations, namely Treasury bond liability management through exchange auctions or repurchase transactions, without affecting the established issuance ceiling and without prejudice to the issuance calendar,” the decree states. It adds that, “to allow flexibility in the management of the Treasury bond portfolio, reopening auctions may be introduced without prejudice to the established issuance calendar”.

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