Highlights

Press briefing on the signing ceremony of legal agreements relating to the bond of $ 1.5 billion issued by Morocco on the international financial market : 14/12/2012

Press briefing on the signing ceremony of legal agreements relating to the bond of $ 1.5 billion issued by Morocco on the international financial market

The Minister of Economy and Finance, Mr. Nizar Baraka and the Minister Delegate in charge of the Budget, Mr. Driss Azami EL IDRISSI held Friday, December 14th, 2012, a press conference on the signing ceremony of legal agreements relating to Morocco`s positive bond issue on the international financial market.

Indeed, the Kingdom placed Wednesday, December 5th, 2012, with success, a bond issue of 1.5 billion dollars in two installments, on the international financial market. During his presentation that focused on "the release of the Kingdom of Morocco on the international financial market," the Minister highlighted the"very low" interest rates of this transactioncompared to a number of African , Mediterranean and developed countries.

"There are few countries that managed to take up a loan for over 30 years at a low interest rate, reflecting a real guarantee on Morocco`s ability to move forward and become a real emerging country" he stated. Regarding the impact of this inaugural bond issue on business climate, the Minister believes that this transaction will reduce pressure on interest rates and thus "ensure better diversified funding of the national economy".

"A mobilization was successful with a subscription to 6 times for a 10 years bond and 4 times for a 30-years bond, strengthens the essential domestic and international confidence in our economy and encourage more investors to be interested in our country, "issued the Minister.

In addition, Mr. Baraka explainedthe recourse to the dollar marketto the better financing terms it offers compared to the euro market, as well as the strong desire to be part of a diversification strategy and broadening the investor base.

The Minister added that the dollar market is an appropriate benchmark for other national public and private issuers, which allowsfunding opportunityin the international market.

Attended the briefing, the Director of Treasury and External Finance, Mrs. Fouzia Zaâboul, the Director General of the Customs and Excise, Mr. Zouhair Chorfi, as well as representatives of the four leading banks that assisted the Kingdom in this process namely Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited and Natixis.

It may be recalled that the Kingdom issued Wednesday, December 5th, 2012, with success, a bond on the international financial market amounting to 1.5 billion dollars in two installments. The first instalment`s amount is $ 1 billion with a 10-years maturity and an interest rate of 4.25 %, the second installment amountsto $ 500 million, with a maturity of 30 years and an interest rate of 5.50%.