Mohamed Benchaaboun, Director General of the Mohammed VI Investment Fund, unveiled today in Casablanca an innovative financing product named “CapAccess” designed to benefit Moroccan enterprises, particularly medium and small businesses.
The launch is the result of a cooperation agreement signed between the Fund, The Professional Association of Moroccan Banks, which represents 11 banks, and the National Guarantee and Enterprise Finance Company “Tamwilcom.”
Benchaaboun stated that the new financing product aims to support Moroccan enterprises with viable investment projects lacking the required personal capital stipulated by banks for loan applications.
During the agreement signing ceremony, he clarified that the product introduces a fresh funding source alongside traditional bank loans. It comprises one-third “subordinated debt” and two-thirds primary bank loans.
The Mohammed VI Investment Fund’s Director General specified that the financing ceiling for “subordinated debts” is set at 30 million dirhams.
Meanwhile, the banks will cover two-thirds of the remaining financing in each classic loan at a reduced interest rate. This move facilitates access to bank financing for Moroccan enterprises, especially medium and small ones, to cover investment costs. This initiative marks a preparatory stage for companies to benefit from financing until they reach another growth stage, eventually listing on the Casablanca Stock Exchange.
Hicham Zanati Serghini, General Director of Tamwillcom, emphasized the role of the National Guarantee and Enterprise Finance Company as an intermediary between partner banks, companies, and the Mohammed VI Investment Fund.
He highlighted the company’s responsibility to monitor financing activities closely, necessitating the Fund to mobilize 4 billion dirhams out of a total investment of 15 billion dirhams over four years. Serghini mentioned that the product launch followed consultations with economic stakeholders and complements the existing bank offerings aimed at facilitating companies’ access to financing.
The “CapAccess” product will be available at participating banks starting April 2nd. It will serve as a one-stop solution for companies seeking benefits in loan issuance or repayment. Partner credit institutions will define eligibility criteria and conditions in advance.
Chakib Laalaj, President of the General Confederation of Moroccan Enterprises, hailed the new financing product as an urgent response to market financing needs, especially in light of the significant impact of the COVID-19 pandemic on Moroccan companies over the past four years. He outlined that access to financing will adhere to various standards, including environmental commitments and job creation indicators.
Head of the Professional Association of Moroccan Banks emphasized the significance of “subordinated debt” in bolstering investment capabilities and stimulating bank financing. He reiterated the banks’ commitment to contributing to the Kingdom’s development projects and facilitating enterprises’ access to tailored credit products, particularly amid the current economic challenges marked by difficulty and uncertainty.
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