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Doha – Label’Vie, a leading food retailer operating in Morocco, has completed a MAD 1 billion ($99.11 million) private bond placement with qualified investors, marking a significant step in its development strategy.
The bond issue, structured into four tranches, aims to finance the company’s expansion plans while diversifying its funding sources and optimizing costs.
The bond offering comprises two five-year tranches and two seven-year tranches, all negotiable over-the-counter.
Tranches A and B, with five-year maturities, feature adjustable and fixed rates respectively, both with bullet repayment at maturity.
Tranches C and D, spanning seven years, carry adjustable and fixed rates with annual linear amortization schedules.
Label’Vie has demonstrated strong financial performance, reporting consolidated revenues of MAD 15.8 billion ($1.56 billion) in 2023, representing a 13% increase from 2022.
The company achieved a consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of MAD 1.3 billion ($128.8 million) during the same period.
The retail giant has maintained its position as Morocco’s primary food distributor, operating nearly 190 stores across various formats by the end of 2024, with a total retail space of 270,000 square meters.
In a notable strategic move, Label’Vie has accelerated the expansion of its discount retail chain, Supeco, tripling its network from 19 stores at the end of 2023 to approximately 60 stores in 2024, increasing total floor space from 2,790 to 6,000 square meters.
The rapid expansion of Supeco comes as a response to increasing competition in Morocco’s discount retail sector, particularly from newcomer Kazyon, which has established over 100 proximity stores in its first year of operations, and from Turkish retailer BIM, the current market leader in this segment.
Label’Vie has set an ambitious target of reaching 150 Supeco stores by 2025, with plans to expand beyond Casablanca, positioning the chain as a neighborhood retailer offering essential products at competitive prices.
