Mozambique's Ematum to sell USD500m 7-yr bond at 8.5%
LONDON, Sept 5 (IFR) - Mozambique's government agency Ematum is set to sell a USD500m seven-year amortising bond at a final yield of 8.50%, according to one of the lead managers.
Books on the issue are oversubscribed and will close at 14:30 GMT.
Ematum had set initial yield guidance of low- to mid-8% on the issue, which was then revised to 8.50% area.
The bonds, which will be eligible for inclusion in the EMBI index, will have a weighted average life of four-and-a-half years.
Mozambique is rated B+ by both Standard and Poor's and Fitch, but the bonds themselves will be unrated.
The Reg S only security is a repackaged unsecured loan from Credit Suisse that carries an unconditional and irrevocable guarantee from the government.
BNP Paribas and Credit Suisse are the lead managers on the bond issue. (Reporting by Davide Scigliuzzo; Editing by Sudip Roy)
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