In the end, Morocco was able to raise 1.25 billion dollars on the 5-year maturities and 1.25 billion on the 10-year maturity with respective spreads of T+195 and T+260. That is a total of 2.5 billion dollars, the ceiling that the country wanted to lift, we learn on the markets.
National sovereign debt was greeted with infatuation by international investors who have requested almost 11 billion while the initial amount to be raised was at least $1 billion (500 million for 5-year maturities and the same for 10-year maturities).
Strong demand made it possible to significantly lower the spread (cost of risk) on the two maturities. Thus, at the opening of the subscription books, Morocco’s indicative spread was around 235 basis points for the bond maturing in March 2028 (maturity over 5 years) compared to the reference security corresponding to the US Treasury rate and around 300 basis points for the September 2033 bond.
In the end, spreads narrowed considerably, dropping to 195 bps for 5-year maturities and 260 bps for 10-year maturities.
Led by teams from the Ministry of Finance and more particularly by the Treasury Department, Morocco’s exit was accompanied by BNP Paribas SA, Deutsche Bank AG, Citigroup Inc. and JPMorgan Chase & Co.
This first international outing from Morocco since 2020 bodes well for the national economy, demonstrating the confidence that the international financial market has in Morocco paper. A feeling shared by the national financial actors who followed this exercise with interest.
