Doha – Morocco successfully raised €2 billion ($2.2 billion) in euro-denominated bonds on Wednesday, exceeding initial expectations by €500 million in its first eurobond sale since 2020. According to Bloomberg, citing sources familiar with the matter, the sale attracted over €6.75 billion in total bids.
The North African country issued the bonds in two tranches. The final spread for the four-year note settled at 155 basis points over midswaps, significantly tighter than the initial price talk of 190 basis points.
The 10-year note landed at midswaps plus 215 basis points, also narrower than initial discussions. BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, and JPMorgan Chase & Co. are serving as bookrunners, with Lazard Inc. acting as adviser.
Last month, Finance Minister Nadia Fettah Alaoui stated in AlUla, Saudi Arabia, “Today we need euros more than dollars.” The yield on Morocco’s existing euro notes due March 2026 had decreased by approximately one percentage point since early 2025, reaching 3.03% in February.
The funds will support Morocco’s preparations for co-hosting the 2030 FIFA World Cup with Spain and Portugal. According to Bloomberg calculations based on government data, the country’s total spending through 2035, including costs from the 2023 earthquake, is projected to reach at least $35 billion.
Mark Bohlund, senior credit research analyst at Redd Intelligence, suggested Morocco might issue the bonds after securing a flexible credit line renewal from the International Monetary Fund, noting: “It lowers the yields and offers a buffer against potential external shocks.”
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The World Bank reinforced its support for Morocco’s World Cup preparations on February 27, when World Bank vice president for MENA, Ousmane Dione, met with Budget Minister Fouzi Lekjaa in Rabat to discuss translating planned investments into economic opportunities.
Earlier in February, the Arab League’s Economic and Social Council pledged economic support during its 115th session, calling on member states to back Morocco’s World Cup preparations.
This followed the Gulf Cooperation Council’s commitment to “provide all forms of support and cooperation” announced by Secretary-General Jassim Muhammad Al-Budaiwi in December 2024.
Investment projects include railway expansion, airport modernization, road networks, deep-sea ports, desalination plants, and investments in green hydrogen and renewable energy infrastructure.
Morocco, which holds the highest non-investment grade rating from all three main rating companies, previously sold $2.5 billion of dollar debt in 2023.
The current bond sale comes as the central bank implements its second consecutive interest rate cut to ease local borrowing costs and encourage investment.
