Morocco to Issue $2 Billion in Sovereign Bonds Amid Economic Challenges

The first issue of sovereign debt bonds is worth 1 billion euros ($1.19 billion) for a maturity of at least 5 years, reports Bloomberg. This euro-bond could extend a previous issue that is due to mature in early October, or refinance it. The second issue worth $1 billion will be used to (re)build the country’s foreign exchange reserves.

The realization of these issues would represent double the country’s forecasts before the emergence of the new coronavirus. In addition, with this new sale of sovereign bonds, Morocco’s total sovereign bond issuances on emerging markets will increase to $170 billion.

"Morocco is ready for this exit on the international bond market, and the government is just waiting for the right time to issue its sovereign bonds in order to benefit from the best possible borrowing conditions," said Mohamed Benchaâboun, Minister of Economy and Finance, during a press conference on Tuesday, August 4 in Rabat.

Like the kingdom, other countries are turning to this market in these times of health crisis that have had heavy economic and social consequences.