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.
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.
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.
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
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.
"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.