Morocco sells $3 bln in triple-tranche bond

Morocco has successfully sold an international bond worth 3 billion dollars composed of three parts, the finance ministry said.

The bond is divided into securities of 7 years, 12 and 30 years each worth 750 million dollars, 1 billion dollars and 1.25 billion dollars, the ministry said.

The deal is the higher amount raised by Morocco in a single bond sale and comes after a 1 billion euro bond issued last October.

The bond was subscribed four times by more than 480 investors reflecting trust enjoyed by Morocco among the international investors community, the ministry said.

Barclays Plc, BNP Paribas SA, JP Morgan Chase and Natixis were mandated for the bond which will shore up Morocco’s finances and foreign exchange reserves in the wake of the pandemic.

The Ministry said that a netroadshow was organized prior to the sale which underscored Morocco’s assets notably political stability and economic resilience.

Morocco’s debt is expected to surge to 76% of GDP in 2020, and the recent bond sale is expected to further inflate Morocco’s debt to GDP ratio especially as it comes after Fitch downgraded Morocco’s rating to junk which means higher cost of debt.