Highlights

Morocco’s remarkable output on the International Financial Market : 24/09/2020

Morocco’s remarkable output on the International Financial Market

Morocco issued successfully, on 24 September 2020, a one-billion-euro bond on the international financial market (two tranches of 500 million euro). The first tranche with a maturity of 5.5 years has a price of 99.374% and a rate of return of 1.495%, i.e. a coupon of 1.375%, while the second tranche with a maturity of 10 years is accompanied by a price of 98.434% and a rate of return of 2.176%, or a coupon of 2%.

This bond issue, which took place in a difficult context marked by uncertainties related to the evolution of the coronavirus (Covid-19) pandemic and its impact on the credit quality of issuers, was a resounding success among international investors with an order book exceeding € 2.5 billion from 197 investors, the ministry added, noting that this success confirms the confidence Morocco enjoys with international bond investors and rating agencies.

The bond issue took also place following a "NetRoadshow" led by the Minister of Economy, Finance and Administration Reform, Mr. Mohamed Benchaaboun, and the teams of the Department of the Treasury and External Finances with the international investor community.

This "NetRoadshow" was an opportunity to highlight the political stability enjoyed by the Kingdom and the resilience of its macroeconomic framework, confirmed by the "Investment Grade" granted by the rating agencies S&P Global Ratings and Fitch Ratings, as well as the scope of reforms implemented under the enlightened leadership of HM King Mohammed VI, which put Morocco on the path of sustainable development and the strengthening of the rule of law and the consolidation of a democratic, modern and open country.

The "NetRoadshow" was also the opportunity to inform investors on the economic and social measures taken by the kingdom to mitigate the repercussions of the health crisis and boost the revival of the Moroccan economy.

This bond was issued in 144A/RegS format in order to allow a large participation of investors across the world, the source pointed out.