Highlights

The Treasury goes international: Morocco issues a $2.5 billion bond

01/03/2023
The Treasury goes international: Morocco issues a $2.5 billion bond

Morocco has issued a bond on the international financial market for a total amount of 2.5 billion dollars divided into two tranches of 1.25 billion each, said Wednesday in London, the Minister of Economy and Finance, Mrs. Nadia FETTAH.

The first 5-year tranche was issued at a spread of 195 bp and a price of 98.855%, offering a yield of 6.22% and serving a coupon of 5.95%, while the second 10.5-year tranche was issued at a spread of 260 bp and a price of 99.236%, representing a yield of 6.602% and a coupon of 6.50%.

This international outing follows a roadshow to the international investment community; led by Mrs. FETTAH, who was accompanied by officials from the Treasury and External Finance Department (DTFE).

"This issue testifies to investors' confidence in the resilience of the Moroccan economy in a context of crisis, as well as the soundness of the Kingdom's macroeconomic fundamentals and the rigor of its public finances," said FETTAH in a statement to MAP.

The Roadshow, the first in three years, was an opportunity to share with investors the great achievements and dynamism of the Moroccan economy under the enlightened leadership of His Majesty King Mohammed VI, the Kingdom being in a leadership position in the African continent, she said.

"This international release in a context of volatility and difficulty of financial markets is proof of the quality of our economy and our credit," observed Ms. FETTAH, noting that the strong response of high-quality investors is a "true testimony of the confidence enjoyed by Morocco.

This issue, which is part of the strategy of diversification of the sources of financing of the Treasury and whose amount is framed by the provisions of the Finance Act 2023, has been a great success with international investors. The order book exceeded 11 billion dollars with a wide diversification in terms of geographical distribution and investor profiles.

During this Roadshow, which took the Moroccan delegation to Boston, New York and London, the political stability enjoyed by the Kingdom, the resilience of its economy in the face of successive shocks of unprecedented magnitude, as well as the scope of the reforms carried out under the enlightened leadership of His Majesty the King, particularly in terms of consolidating the Social State, integrating into the global economy and committing to sustainable development, were highlighted.

This issue was made in 144A/RegS format in order to allow a wide participation of investors worldwide.