Morocco Issues €1 Billion Bond on International Financial Market

  • 28 September 2020 / News / 84 / ABI 1

Morocco Issues €1 Billion Bond on International Financial Market

Morocco successfully issued a €1 billion bond on the international financial market on Thursday, with two €500 million tranches. 

Morocco’s Ministry of Economy and Finance celebrated the bond issuance, emphasizing the success of the sales of the sovereign notes as demands hit €2.5 billion, according to Morocco’s state media.

The first tranche of Morocco’s €1 billion bond has a maturity of 5.5 years, a price of 99.374%, and a rate of return of 1.495%, or a coupon of 1.375%.

The bond’s second tranche has a 10-year maturity, a price of 98.434%, and a rate of return of 2.176%, or a coupon of 2%.

In a press release, the Ministry of Economy stressed that the bond issuance occurred “in a difficult context” amid the uncertainties of the COVID-19 crisis and its impact on the credit quality of bond issuers.

However, Morocco’s €1 billion bond issuance was “a resounding success among international investors,” according to the ministry.

The press release reports the bond enjoyed an order book grossing €2.5 billion from 197 investors. This success, the statement added, confirms international bond investors’ and rating agencies’ confidence in Morocco.

The bond issuance followed Economy Minister Mohamed Benchaaboun’s “NetRoadshow” with the international investor community. The minister led the initiative in partnership with teams from the Department of the Treasury and External Finances (DTFE).

Morocco’s “NetRoadshow” allowed Benchaaboun to promote the country’s political stability and the resilience of its macroeconomic framework. He underlined, in particular, Morocco’s “Investment Grade” from S&P Global Ratings and Fitch Ratings.

The minister also highlighted the scope of reforms Morocco has implemented under the leadership of King Mohammed VI. Bechaaboun stressed these reforms have “put Morocco on the path of sustainable development,” strengthened the rule of law, and consolidated the country as democratic, modern, and open.

The “NetRoadshow” also enabled Benchaaboun to inform potential investors of Morocco’s economic and social measures aimed at mitigating the negative repercussions of the COVID-19 crisis and sparking the revival of the Moroccan economy.

Morocco issued the €1 billion bond in the 144A/RegS format, extending the scope of participation for investors across the globe.