Morocco Raises 2.25 Billion Euros in International Bond Sale
Economy
Morocco has successfully returned to international markets with a 2.25 billion euro bond sale, split across two maturities of eight and 12 years.
The operation attracted demand of 5.2 billion euros, slightly below the 2.5 times oversubscription level.
Financing conditions improved from initial price indications, with spreads set at Mid-Swap +170 basis points for the eight-year tranche and Mid-Swap +200 basis points for the 12-year tranche, down from initial indications of MS+200 basis points and MS+230 basis points, respectively.
This 30 basis point tightening on both lines reflects solid investor demand, albeit less pronounced than in previous operations.
The bond sale takes place in a more volatile environment marked by geopolitical tensions in the Gulf and rising risk premiums on international markets.
The operation is also part of a context of high financing needs, with the Finance Law authorizing up to 60 billion dirhams in external borrowing and a supplementary budget increase of around 20 billion dirhams mobilized to support the acceleration of public investments and strategic projects in the Kingdom.
The successful bond sale underscores the Moroccan government's ability to tap into international capital markets, providing a vital source of funding for its development plans.
This development is particularly significant for foreign investors seeking to gain exposure to the Moroccan economy, which is poised for growth driven by infrastructure investments and a favorable business environment.