Mozambique Tuna Bonds in Record Surge on Restructuring
- Maximum price of new sovereign notes to be 80 cents on dollar
- Details of debt exchange terms will be announced on March 17
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Bonds of Mozambique’s state-owned tuna-fishing company gained the most on record after the south-east African nation proposed to exchange almost $800 million of debt for longer-term securities in a bid to reduce annual interest payments.
Yields on the the $773.5 million of sinkable bonds, guaranteed by the sovereign, fell 2.4 percentage points to 16.72 percent by 10:28 a.m. in London after dropping 173 basis points on Wednesday. That boosted the price 4.9 percent to 80.2 cents to the dollar, from 75 cents on Friday, the biggest gain since the debt was sold in September 2013, according to data compiled by Bloomberg.