The Mozambican state has completed two new Treasury bond (Obrigações do Tesouro) swap operations with a combined value of €161.2 million, bringing the accumulated total of securities placed across 16 operations since the start of 2026 to €972.3 million.

According to data from the Mozambique Stock Exchange (BVM), cited by Lusa, the operations are designed to replace debt securities with near-term maturities with new bonds carrying longer repayment horizons.

Both operations were concluded on 21 October and correspond to the Treasury Bonds 2026 – 15th Series and 2026 – 16th Series, within the framework of the government’s domestic public debt management strategy.

The first operation, relating to the 15th Series, involved €106.6 million and targeted the exchange of Treasury bonds issued in 2022 — specifically the 10th Series securities still in circulation. According to results published by the BVM, total demand matched the amount effectively placed and was fully satisfied. The ratio of demand to supply available for the swap stood at 80.36%.

The second operation, corresponding to the 16th Series, totalled €54.6 million and was likewise conducted through a liability swap auction. Demand was fully satisfied, with a demand-to-supply ratio of 63.35%.

With these two transactions, the accumulated value of Treasury bond placements in 2026 reached €972.3 million, according to Lusa calculations based on BVM data. The figure represents more than double the €461 million placed throughout the whole of 2025, reflecting a significant increase in the volume of operations carried out in the domestic public debt market.

However, a distinction must be drawn between the overall volume of operations and any actual increase in public indebtedness, since part of the transactions involves the replacement of existing securities rather than the raising of new financing. Swap operations allow the state to substitute bonds with near-term maturities for new securities with longer repayment schedules, reducing immediate pressure on the public treasury and redistributing financial obligations over time.

For 2026, the government plans to conduct 18 Treasury bond issuances worth approximately €467.9 million, in addition to nine swap operations involving securities maturing in the same year, valued at €625.2 million.

The Ministry of Finance decree regulating these operations establishes that issuances are carried out through the BVM, while also permitting liability management operations including swap auctions and repurchase transactions. “Under this decree, the issuer may execute neutral operations — that is, liability management operations in Treasury bonds through swap auctions or repurchase transactions — without drawing down the fixed issuance limit and without prejudice to the Issuance Calendar,” the document states.

The official calendar covers swap operations for bonds issued in 2021, 2022, and 2023, with maturities falling due in 2026, with the aim of providing greater flexibility in the management of the state’s financial obligations.

Finance Minister Carla Loveira has acknowledged that the sustainability of public debt represents “one of the greatest challenges” facing the Mozambican economy, and has advocated the implementation of reforms to improve debt management. The intensification of swap operations is taking place against a backdrop of pressure on public finances, as the government seeks to manage the maturities of domestic debt and ensure greater predictability in meeting its financial obligations.

While extending payment timelines may ease immediate cash flow requirements, these operations do not eliminate the underlying commitments assumed by the state or the financial costs associated with the public debt.