Morocco's Successful Bond Issuance
On May 19, 2026, Morocco successfully executed a strategic return to the international bond market, raising an impressive €2.25 billion. This issuance was structured into two tranches, with one set to mature in 2034 amounting to €1.25 billion and another maturing in 2038 for €1 billion, corresponding to maturities of 8 and 12 years respectively. The operation drew significant interest, generating a demand totaling €5.2 billion, which translates to a subscription level of approximately 2.5 times, indicating a robust appetite among investors.
The financing conditions showed improvement compared to initial pricing indications, as the final spreads were set at Mid-Swap +170 basis points for the 8-year tranche and Mid-Swap +200 basis points for the 12-year tranche, reduced from initial indications of MS+200 bp and MS+230 bp. This tightening of 30 basis points across both tranches reflects a solid demand from investors, albeit slightly less vigorous than previous issuances.
Context of the Issuance
This bond issuance comes at a time of heightened market volatility, driven by geopolitical tensions in the Gulf region and an increase in risk premiums on international markets. It is also positioned within a broader context of substantial financing needs, as the Moroccan budget law permits up to 60 billion dirhams in external borrowings. Moreover, an additional budget extension of around 20 billion dirhams has been mobilized to support the acceleration of public investments and significant strategic projects within the Kingdom.
As reported by medias24.com.
