Multibillion Dollar Hopes for Gas Riches Fuel Mozambique’s Bonds

Mozambique’s bonds have generated three times the average return from emerging markets since April, boosted by the conflict-rattled nation’s plan to revive a multibillion-dollar gas project.

Bondholders have made more than 23% gains from the country’s restructured 2031 dollar note since April 9, versus a 6.5% total return on Bloomberg EM Sovereign Index. That’s helped it escape an indicator of debt distress, with yield premiums over US Treasuries falling under 1,000 basis points.