Mozambique's Mobile Company Issues US$10 Million Bonds

APA-Maputo (Mozambique) MozambiqueÃ's leading mobile phone company, Moçambique Cellular (mCel) on Monday said that it had launched its second issue of bonds valued at US$10 million to finance its ambitious expansion programme.

The company said that the purpose of the bond issue was to raise funds to finance the companyÃ's US$70 million investment plan, which includes improving the quality of the network.

"The bonds have a maturity of five years, with the possibility of early reimbursement after three years," it said

It added: "There are 2.5 million bonds, each with a face value of four US dollars. They carry an interest rate of 18 percent, plus 3.75 percent of an index rate, and the interest will be paid every quarter," it said.

The first bond issue, also for US$10 million dollars, was done three months ago.

The company says the difference is that the current bond issue is public, and any citizen can but the bonds. The earlier issue was private aimed at a specific group of creditors.

The bonds will be sold through the Mozambique Stock Exchange (BVM). So far six companies have issued bonds since the creation of the Mozambican stock Exchange in 1999.

These are Madal (1999), Cimentos de Moçambique - PortugalÃ's Cimpor Group (2002), Telecomunicações de Moçambique 2001 and 2004, Banco Internacional de Moçambique (2000), Standard Bank (2000) and insurance company Empresa Moçambicana de Seguros-Emose (2007).

MCel has three millions subscribers nationwide.

Posted to the site on 15th September 2008