Morocco signs documents related to Eurobond issue
Morocco, Economics, 7/9/2003

Documents related to the Euros 400 million-worth EuroBond issue, that was launched by Morocco at the end of June in the international financial market, was signed in Rabat on Monday by finance and privatization minister, Fathallah Oualalou, and representatives of the BNP Paribas banks and Merrill Lynch, the two lead managers.

The issue, the first to be launched without external guarantee, enabled Morocco to make a benchmark on its own loan in the international financial market, the minister said.

European investors subscribed with 65 percent in the overall amount of the issue, investors from the Middle East with 25 percent, from the US with 9 percent and from Asia with 2 percent.

Investors included investment funds (40%), banks (37%), insurances and pension funds (5%) governmental agencies (3%) and others (15%).

The five-year Euro Bond Issue also benefited from a 5.24 percent rate of return.

According to the minister who conducted on June 20-27 a road show in Bahrain, Dubai, Paris, Munich, Frankfort, Amsterdam and London to promote the bond issue, the recourse to the international market was due to Morocco's drive to open up on external markets, make a benchmark in the international financial market and consolidate the active management of external loans since the bond issue will serve to pay back most expensive loans.

The operation was launched at this moment because of the favorable national and international conditions, he underscored, adding that the improvement of Morocco's rating by "Standard and Poor's" and "Moody's" international rating agencies also contributed to the success of the issue.

The road show allowed making contacts with 220 international investors and reflected an important demand that reached 800 subscriptions valued at nearly Euros 800 million, that is the double amount of the issue, the minister said.

The success of the operation evidences the investors' trust in Morocco, he noted.

Previous Stories:
  France is a key market for Moroccan tourism, diplomat   (7/8/2003)
  Morocco raises 400m in Eurobond issue as investors shrug off fears, FT Writes   (6/30/2003)
  Finance minister surveys structural reform; foreign debt eats three times investment funds   (5/7/2003)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search