Like many companies worldwide, Royal Air Maroc also experienced a setback due to COVID-19 and Morocco’s internal economic crisis.
Rabat – Morocco’s government and the Hassan II Fund are set to increase Royal Air Maroc capital by MAD 3.4 billion ($374.48 million).
The Hassan II Fund and the state are set to increase Royal Air Maroc’s capital through a “subscription” that started on November 20 and will continue until December 20.
The program offers 34 million shares at a value of MAD 100 ($11) per share, Moroccan television channel 2M reported.
The operation is set to raise the company’s capital to MAD 7.6 billion ($837 million).
Hassan II Fund owns 98% of the company’s capital and will have a “preference to subscribe on a non-discountable basis at a price of 15 new shares against 16 old shares,” the news outlet added.
The television channel added that a deal between Morocco and the state-owned company Royal Air Maroc provided for financing approximately MAD 6 billion ($660.86 million). Of this sum, MAD 3.4 billion ($374.48 million) is in the form of an increase in the company’s capital.
The agreement the company and the state signed in August stipulates that the rest of the financing is in the form of loans guaranteed by the state to Royal Air Maroc.
In July, Morocco’s Minister of Economy Mohamed Benchaaboun announced that the government granted an exceptional allocation of $624.8 million to support Royal Air Maroc.
The financial aid was part of a budget to support the Moroccan public enterprises hardest hit by the COVID-19.
Morocco suspended all air travel in March. With strict lockdown measures, Royal Air Maroc operated only cargo and repatriation flights.
After Morocco decided in July to partially re-open borders for the diaspora and foreign residents living in the North African country, Royal Air Maroc launched a special program to carry out flights in favor of the allowed categories. In September, regular flights resumed for tourists from visa-exempt countries and business people.
Suspension of flights cost the company $5 million per day during the lockdown.