Morocco completes 2 bln euro-denominated oversubscribed bond sale

Morocco has sold 2 billion euros in a dual-tranche bond split into four and ten years, as demand exceeded the offer, Bloomberg and Global Capital reported.

Morocco gathered some 7 billion dollars in orders for the bond sale, highlighting the attractivity of the country for global investors.

The bond would boost the government’s finances as it invests in infrastructure projects in preparation for the 2030 World Cup, it will co-organize with Spain and Portugal.

The country has mandated BNP Paribas, Citigroup, Deutsche Bank and JP Morgan to arrange for the bond sale, the first euro bond since 2020.

This strong demand allowed Morocco to secure favorable terms, with the final spread for the four-year note settling at 155 basis points over midswaps and the 10-year note at 215 basis points over midswaps.

Both Fitch Ratings and S&P rate Morocco BB+ with a stable outlook, while Moody’s rating is Ba1.

These ratings reflect Morocco’s economic conditions, fiscal policies, and external debt levels.

While speculative-grade ratings suggest higher risk compared to investment-grade ratings, Morocco’s stable outlook from these agencies indicates confidence in its ability to manage its economic challenges.