Mozambique bonds rally after settlement on Tuna debt scandal

Mozambique’s bonds rallied after UBS Group AG announced it had reached a settlement with the southeast African nation over Credit Suisse’s role in a ship-financing scandal.

The yield on Mozambique’s 2031 debt fell 19 basis points to 13.34% by 10:07 a.m. in Maputo, the capital.

The settlement announced on Sunday resolved a case between the Swiss bank and Mozambique that began a decade ago, when Credit Suisse first financed a new coastal patrol force and tuna fishing fleet for Mozambique. The African nation alleged the Swiss bank ignored red flags and the corruption of its own bankers in deals struck as part of $2 billion worth of bond deals.

No details of the settlement were released. People with knowledge of the matter said last week that UBS was in talks to forgive as much as $100 million of Mozambique’s debt as part of the deal.

Mozambique’s government can’t provide any more information because the case is still in court, Deputy Attorney General Angelo Vasco Matusse said at a briefing in the capital, Maputo, on Monday.

Source: norvanreports