On September 24, 2024, the Moroccan Bank for Trade and Industry (BMCI) concluded a successful issuance of subordinated bonds, securing a total of 1.5 billion dirhams. The operation, open for subscription from September 12 to 18, 2024, was aimed at refinancing existing debt held by Collective Investment Schemes (OPCVM). This strategic move allows BMCI to restructure its debt on more favorable terms.

The bond issuance was split into two distinct tranches:

  1. Fixed-rate tranche: Valued at 3.8 billion dirhams, this portion comes with a 10-year maturity and offers a fixed interest rate of 4.16%. The rate was determined by adding a 75-basis-point risk premium to the prevailing market reference rate.
  2. Revisable-rate tranche: This tranche, amounting to 6.1 billion dirhams, also carries a 10-year maturity. Its interest rate is adjustable annually, indexed to the 52-week Treasury bill rate, with an added 70-basis-point risk premium. For the first year, the coupon rate is set at 3.45%.

This successful bond issuance highlights investor confidence in BMCI’s financial stability. By refinancing a portion of its subordinated debt under these favorable terms, BMCI can optimize its balance sheet structure and improve financial flexibility for future growth.

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