Morocco is set to begin preparations this week for its first international bond issuance in five years, following the last Euro-denominated debt issue.
According to Bloomberg, the Moroccan government has selected four investment banks to handle the potential sale of foreign-currency bonds, which will mark Morocco’s first return to international debt markets since 2023.
The four investment banks—BNP Paribas, Citigroup, Deutsche Bank, and JP Morgan—will work closely with Morocco’s Treasury in a promotional roadshow aimed at attracting investors in Paris and London, beginning Monday, March 24.
While the precise amount of the bond issuance has not yet been disclosed, sources suggest that the deal will likely be split into two separate tranches, one with a four-year maturity and the other with a ten-year maturity, depending on prevailing market conditions.
The Moroccan government has tasked Lazard, a global financial advisory firm, as the exclusive financial advisor to ensure optimal structuring of the bond issue.
According to Bloomberg, the goal is to ensure the bonds are well-received by international investors, guaranteeing a smooth process.
A source within Morocco’s Ministry of Economy and Finance cautioned that these efforts are merely part of ongoing preparations for negotiations, and it remains uncertain whether the bond issuance will come to fruition.
In the past, Morocco has shown strong participation in the international bond market, securing $2.5 billion in bonds in 2021.
The country, which holds a “non-investment grade” rating from the major global credit agencies, has historically used bond sales to finance various projects.
Despite the current uncertainty surrounding the bond issuance, Morocco’s readiness to return to international debt markets signals confidence in its financial stability, and continued efforts to diversify its sources of funding amidst an evolving global economic landscape.
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