JOHANNESBURG (Reuters) – The Mozambican government formally launched an exchange offer for its defaulted 2023 Eurobond on Tuesday, seeking the consent of bondholders for a restructuring that would ease pressure on its strained public finances.

Mozambique said in May it had agreed a restructuring deal “in principle” with the majority of the holders of the dollar-denominated bond, one of the instruments at the centre of a hidden debt scandal that triggered a currency collapse.

In the exchange offer, Mozambique said settlement of the restructuring of the bond was expected to occur on Sept. 30, if the offer was approved by at least 75 percent of bondholders.

Reporting by Alexander Winning and Karin Strohecker; Editing by Alison Williams