Morocco successfully issued €1 billion bonds on the international financial market, two tranches of €500 million each, announced the Ministry of Economy, Finance, and Administration Reform.
The first tranche with a maturity of five and a half years has a price of 99.374 percent and an interest rate of 1.495 percent, that is a coupon of 1.375 percent.
The second tranche with a maturity of ten years is accompanied by a price of 98.434 percent and an interest rate of 2.176 percent, or a 2-percent coupon, the ministry explained in a press release.
The statement indicated that the bond was issued amid difficult circumstances marked by uncertainties related to the coronavirus pandemic and its impact on the credit quality of issuers. However, it was a resounding success among international investors with an order book exceeding €2.5 billion from 197 investors.
It stressed that this success confirms the confidence Morocco enjoys with international bond investors and rating agencies.
The bond was issued a result of a campaign led by Minister of Economy, Finance and Administration Reform Mohamed Benchaaboun and the teams of the Department of the Treasury and External Finances (DTFE) with the international investor community, stated the ministry.
The campaign highlighted Morocco's political stability and the resilience of its macroeconomic framework, which were confirmed by the “Investment Grade” granted by Fitch Ratings and S&P Global Ratings.
It also addressed the reforms implemented under the guidance of King Mohammed VI, which put Morocco on the path of sustainable development and help consolidate a democratic and modern state.
The campaign was an opportunity to inform investors on the economic and social measures taken to mitigate the repercussions of the health crisis and boost the revival of the Moroccan economy.
This bond was issued in the 144A/RegS format in order to allow a larger participation of global investors, concluded the statement.
