Attijariwafa Bank has announced a subordinated bond issuance worth 1.5 billion Moroccan dirhams (approximately $150 million). Approved by the Moroccan Capital Market Authority (AMMC) on December 13, 2024, under reference VI/EM/037/2024, this operation represents a crucial step in the bank’s efforts to reinforce its regulatory capital. The move is part of a broader strategy to support its long-term growth while ensuring financial stability in a rapidly changing economic environment.
The prospectus for this issuance is built on a robust foundation of preparatory documents. The 2023 reference document, registered on June 14, 2024, under EN/EM/005/2024, lays the groundwork, while an updated version, registered on December 13, 2024, under EN/EM/029/2024, provides the latest adjustments. The operation note further details the conditions of this bond issuance, ensuring transparency and regulatory compliance.
This bond is structured into two distinct non-listed tranches, each capped at 1.5 billion dirhams. With a total of 15,000 bonds in each tranche, each bond carries a nominal value of 100,000 dirhams. The loan duration is set at seven years, featuring annual linear repayment and a two-year grace period. The two tranches offer different interest rate structures: Tranche A applies a fixed rate derived from the secondary market’s seven-year Treasury bill curve, with an additional 50 basis points as a risk premium, while Tranche B offers a variable rate adjusted annually, calculated from Bank Al-Maghrib’s 52-week monetary rate, plus a 45-basis-point risk premium.
The issued bonds are not backed by any repayment guarantees and will be traded over-the-counter, outside the stock exchange. Allocation will follow a pro-rata distribution among subscribers, without differentiation between the two tranches. The issuance, advised by Attijari Finances Corp., aims to enhance the bank’s capital base in line with regulatory requirements and to facilitate its strategic development plans in an ever-changing financial landscape.
This operation underscores Attijariwafa Bank’s commitment to maintaining its leadership position in Morocco’s financial sector while continuing to adapt to the demands of the modern economy.
