Morocco’s state housing and urban development group, Al Omrane, is asking investors who bought its bonds to attend a meeting next month after it raised 900 million dirhams on the debt market.
The meeting will take place on 14 July at the company’s headquarters in Rabat. Its main purpose is to appoint a representative who will act on behalf of bondholders and protect their interests.
Al Omrane completed the bond issue on 12 May, raising a total of 900 million dirhams through four separate tranches aimed at institutional investors such as banks, insurance companies and pension funds.
The largest portions of the fundraising came from Tranche C, which raised 335 million dirhams, and Tranche D, which raised 300 million dirhams. Tranches A and B raised 165 million dirhams and 100 million dirhams respectively.
The bonds have long repayment periods, with maturity dates set for May 2033 and May 2036.
Under Moroccan law, investors who buy bonds from the same issuance are grouped together in a body that represents their shared interests. The July meeting will establish that body and appoint its official representative.
Investors will vote on a proposal to appoint Abdelaziz Talbi, acting on behalf of Talbi Audit et Conseil, as the permanent representative of the bondholders.
If approved, he will be responsible for ensuring that Al Omrane respects the terms of the bond issue and for defending bondholders’ interests if problems arise. He would also have the power to call future meetings and take legal action on behalf of bondholders when necessary.
The fundraising comes as Al Omrane continues work on government-backed housing and urban development projects across Morocco. These include affordable housing programmes, efforts to reduce substandard housing and projects linked to the country’s regional development plans.
The successful 900 million dirham bond issue highlights continued investor confidence in Al Omrane and provides the group with long-term funding for its development projects.
