Morocco Issues $2.5 Billion Bond on International Financial Market

Rabat – Morocco has successfully issued a $2.5 billion bond on the international financial market, with two $1.25 billion tranches, Morocco’s Minister of Economy and Finance Nadia Fettah Alaoui announced on March 1.

The Ministry of Economy qualified the issuance as a great success among international investors particularly in a context of volatility and difficulty of financial markets.

The first tranche – which refers to a portion of the money – of Morocco’s $1.25 billion bond has a maturity of five years, a price of 98.855%, and a rate of return of 6.22%, or a coupon of 5.95%.

Whereas the bond’s second tranche has a 10-year maturity, a price of 99.236%, and a rate of return of 6.602%, or a coupon of 6.50%.

The ministry celebrated the bond issuance, emphasizing that its success is largely due to the Roadshow presented to international investors led by Fettah Alaoui, as well as officials of The Department of Treasury and External Finance (DTFE).

“This bond issuance reflects investors’ confidence in the resilience of the Moroccan economy in a context of crisis, as well as the soundness of the Kingdom’s macro-economic fundamentals and the rigor of its public finances,” Fettah Alaoui told Morocco’s press agency (MAP).

Fettah Alaoui highlighted that the Roadshow–the first in three years—served as an opportunity to share with investors the great achievements and dynamism of the Moroccan economy.

This issue is part of a strategy that seeks to diversify the treasury’s funding sources.

According to the ministry, the strategy has been a great success with international investors, “The order book has exceeded 11 billion dollars with a wide diversification in terms of geographical distribution of investors profile.”

During this Roadshow, the Moroccan delegation traveled to Boston, New York, and London. The event shed light on Morocco’s political stability, the resilience of its economy in the face of successive shocks of unprecedented magnitude, and the significance of the reforms carried out under the King’s leadership.

Morocco issued the $2.5 billion bond in the 144A/RegS format which is a regulation under the Security Act that permits Qualified Institutional Buyers QIBs to buy private securities and trade between themselves. The format has allowed Morocco to extend the scope of participation for investors across the globe.