Morocco says 1 billion Euro bond sale was ‘successful’
Morocco issued on Thursday an international bond worth 1 billion Euros, the finance ministry said, noting the success of the sovereign notes sales as demand hit €5.3 billion.
The bond has a maturity of 12 years and an interest rate of 1.5% as Morocco tapped the international market at a very propitious time benefiting for a sound macro-economic framework.
“This bond issue marks Morocco’s return to the international financial market after five years of absence,” said the ministry in a statement, highlighting the “remarkable success” of the operation among 285 investors.
The demand on Morocco’s bond “reflects the trust that Morocco has within major financial international institutions and rating agencies,” the statement said.
A Moroccan delegation led by Finance Minister Mohamed Benchaaboun took part in a roadshow in Europe’s key cities.
“During this roadshow, investors appreciated in particular Morocco’s political stability and the resiliency of its macro-economic framework as the country has maintained its investment grade for over two decades,” the ministry said.
The success of the bond is also reflective of the reforms led by King Mohammed VI to reinforce Morocco’s economic outlook.
The IMF has commended Morocco’s financial and economic reform saying the country has sound macro-economic environment.
Ratings agencies including S§P and Moody’s maintain Morocco’s stable outlook.
Morocco and Tanzania are the two countries in Africa with an investment grade. Morocco’s foreign debt is limited to 29% of GDP while total debt stands at 65% leaving room for the country to boost its reserve through external borrowings.