Morocco Raises $3 Billion in Successful International Bond Issue After 7-Year Hiatus

The operation, which was a resounding success, was carried out in three tranches, according to a press release from the Ministry of Finance. The first tranche with a maturity of 7 years, amounts to $750 million and was issued at a spread of 175 basis points (bp). It also offers a yield of 2.412% at a price of 99.763%, and pays a coupon of 2.375%.

For the ministry, "the order book exceeded $13 billion and the issue was subscribed more than 4 times". It maintains that this operation has made it possible "to reconnect with American investors, diversify our financing sources and establish new references on the Moroccan credit curve".

To succeed in this operation, the Minister of Finance, Mohamed Benchaâboun, conducted an internet roadshow with the international investor community and the staff of the Treasury and External Finance Directorate. It allowed him to present to investors the economic and social measures developed by Morocco to reduce the impact of the effects of the health crisis, and to stimulate the revival of the Moroccan economy among them.