Highlights

First bond issue guaranteed through the Guarantee Fund for Public Establishments and Enterprises : 11/12/2020

First bond issue guaranteed through the Guarantee Fund for Public Establishments and Enterprises

The Ministry of the Economy, Finance and Administrative Reform announced the completion of the first bond issue through the Guarantee Fund for Public Establishments and Enterprises (FGEEP) managed, on behalf of the State, by the Central Fund for Guarantees (CCG).

Thanks to this new guarantee mechanism, the National Railways Office (ONCF) was able to successfully close a bond loan for an amount of two billion dirhams, at a fixed rate, with a maturity of 30 years repayable with 15-year grace period.

The said issue took place between December 7 and 10, 2020 and received a huge support, with an oversubscription of almost twice the amount issued and the active participation of the majority of institutional investors in the market.

Also thanks to this operation, a new step was taken for the consolidation of the bond issuance compartment through a new guarantee mechanism which broadens the financing instruments available to companies and public institutions and which diversifies the investment possibilities offered to investors.

It is to recall that the creation of the FGEEP was decided during the seventh meeting of the Economic Watch Committee (CVE) of May 8, 2020. This new guarantee mechanism intended to guarantee the financial resources raised by public establishments and enterprises under form of bond issues, bank loans and other debt instruments.

The FGEEP guarantee benefits credit institutions, bond investors, private debt funds, collective securitization funds and various lenders.