USA authorities check out the VTB deal on Mozambique bonds selling

The USA S.E.C. checks out the deal on Mozambique bonds selling in 2013 totaling $850 million with the participation of Russian VTB, Swiss Credit Suisse and French BNP Paribas, according to The Wall Street Journal. 28.Dec.16 9:21 AM By Anna Tuzova Photo Toinnov.com    655

The Mozambique public company with the help of VTB and Credit Suisse and BNP Paribas has conducted an emission of bonds totaling $850 million, according to The Wall Street Journal. It was expected that funds obtained from investors would be shifted to fisheries sector. After a while, the Mozambique government stated that money partially were spend on the military equipment. At the same time two years after the emission Mozambique has stated a need for debt restructuring. Investors didn’t know, besides, that VTB and Credit Suisse have provided a hidden loan amounting to $1,2 million, according to The Wall Street Journal. These money were also spent on additional military procurement. SEC sent the letters to all such bonds holders with a request to share the documents given by banks when Mozambique bonds had been allocated. This letter also contains a request of all the correspondence about bonds data. Commission has rejected to give the comments. The Wall Street Journal has stated that the British Financial Services Authority checks Credit Suisse Group and VTB as well. The objective of the audit is to find out if the rules regulating disclosure of information on restructuring of bonds to investors are not violated.

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