Highlights

Morocco’s Remarkable Output on the International Financial Market : 09/12/2020

Morocco’s Remarkable Output on the International Financial Market

Morocco issued successfully, on 8 December 2020, a three-billion-dollar bond on the international financial market with three tranches. The first tranche of 750 million dollar with a maturity of 7 years, issued at a spread of 175 basis points, has a price of 99.763% and a rate of return of 2.412%, i.e. a coupon of 2.375%. The second tranche, covering an amount of 1 billion dollar, issued at a spread of 200 bps, with a maturity of 12 years has a price of 99.570% and a rate of return of 3.043%, and a coupon of 3%.

As for the third tranche with a 30-year maturity and amounting to 1.25 billion dollar, it was issued at a spread of 261 bps and a price of 100%, thus offering a rate of return of 4% and serving a coupon of 4%, according to the release.

This issue, which marked Morocco’s return to the dollar compartment after an absence of seven years, was a resounding success with international investors, of which 478 were served. The order book exceeded 13 billion dollar, and the issue was more than 4 times oversubscribed.

It made it possible to renew contact with American investors, to diversify our sources of financing and to establish new references on the Moroccan credit curve.

This issue, which was placed with high-quality investors, in particular fund managers, insurance companies and pension funds, received a favorable reception reflected by a wide geographical distribution, particularly in the United States, the United Kingdom, Europe, Asia and the Middle East.

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

This "NetRoadshow" highlights the political stability enjoyed by the Kingdom and the resilience of its macroeconomic framework 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.