UPDATE 3-Mozambique says Eurobond restructuring a relief for its budget

* Mozambique to restructure $726.5 million Eurobond

* Finmin says restructuring plan has good terms

* IMF says to continue supporting Mozambique (Adds finance minister quotes, details)

MAPUTO, Nov 8 (Reuters) - Mozambique's agreement with the bulk of its creditors to restructure a $726.5 million Eurobond has good terms and conditions and was "a relief for the budget", Finance Minister Adriano Maleiane said on Thursday.

Mozambique, which has missed several repayments, said on Tuesday it had struck an agreement with the bulk of its creditors to restructure the Eurobond, including extending maturities and sharing future revenue from offshore gas projects.

Under the deal, Mozambique would issue a new $900 million Eurobond maturing in 2033 with a coupon of 5.875 percent - just over half what the current outstanding bond was designed to pay in interest.

"It's a relief for the budget until the time we get additional revenue," Maleiane told a business conference in Maputo.

Speaking to Reuters on the sidelines of the conference, the minister said: "The commercial terms we reached with the four members of bondholders ...I think it's good terms and conditions."

The four creditors who had agreed in principle to the restructuring controlled around 60 percent of the 2023 bond. Support from creditors holding 75 percent of the bond will be needed to activate collective action clauses.

Maleiane could not comment on whether he was confident he would get the support needed to seal the deal.

"I can't say anything on behalf the fifth group, but I think they are now interacting and digesting the proposal and they will come up with something before or at the meeting we have to convene in the first quarter of 2019."

Maleiane also said Mozambique was still in discussion with creditors over a $535 million loan to Mozambique Asset Management (MAM) and a $622 million facility for ProIndicus, a state-owned maritime security company.

"We haven't reached any agreement on kind of instruments or timeframes," he said referring to talks over restructuring the two loans.

IMF SUPPORT

A group of syndicated loan members who lent money to ProIndicus were looking for a similar restructuring deal that has been agreed with Eurobond holders, a spokesman for the lenders said on Wednesday.

Maleiane reiterated that it was a priority for markets to trust Mozambique, which has been battling to recover from a debt crisis, two years after it acknowledged $1.4 billion of previously undisclosed lending.

The disclosure prompted the International Monetary Fund and foreign donors to cut off support to Mozambique, triggering a currency collapse and a default on sovereign debt.

"We are still to analyse the terms," Ari Aisen the IMF's resident representative in the southern African nation told the conference, referring to the restructured Eurobond.

"We are going to continue supporting Mozambique in pursuit of good governance, transparency and accountability, which are part of a framework required for a stable microeconomic environment." (Additional reporting by Manuel Mucari Editing by James Macharia)