As a key partner in Morocco’s national economic strategy, BANK OF AFRICA (BOA) is actively driving investment in the country by contributing to the modernization of the hotel sector. Through its new financial product, “Cap Hospitality by BOA,” the bank aims to strengthen the financial structure of Classified Tourist Accommodation Establishments (EHTC) and create favorable conditions for their growth.
Cap Hospitality by BOA is designed as a joint loan product (Bank Loan + Subordinated Debt) to finance renovation, upgrading, and capacity expansion projects for eligible EHTC. The financing is available for projects up to 100 million dirhams and is structured as follows:
- Subordinated Debt (“Junior Loan”): Up to one-third of the total credit
- Bank Loan (“Senior Loan”): At least two-thirds of the total credit
A complementary funding opportunity for hotels
Cap Hospitality by BOA can be combined with other state financing or subsidy programs, such as the GO SIYAHA program managed by MAROC PME. This synergy allows companies to access additional funding sources to bring their projects to life.
Key benefits of Cap Hospitality by BOA
The Cap Hospitality product offers several advantages for hotel operators, including:
- Competitive financing conditions: Low-interest rates, flexible maturity, and deferred payments.
- No application fees for the subordinated debt component.
- Extended repayment period: The junior loan repayment period is three years longer than the bank loan.
- Double deferral on capital: The junior loan deferral period can be twice that of the bank loan.
- Guarantee options: The senior bank loan can benefit from Damane Istitmar guarantees provided by Tamwilcom.
- State support: The Moroccan government will reimburse the EHTC for the VAT-inclusive interest on the joint loan throughout the credit term.
Through this strategic initiative, BANK OF AFRICA reaffirms its role as a key player in supporting the country’s economic ambitions. By offering tailored financial solutions, the bank is committed to helping businesses in the tourism sector thrive and expand.
