Attijariwafa Bank has successfully completed a subordinated bond issuance amounting to 1.5 billion dirhams, a clear testament to the trust investors place in this leading Moroccan financial institution. This operation reinforces the bank’s status as a central figure in the country’s financial landscape and strengthens its long-term growth objectives.
The bonds, with a nominal value of 100,000 dirhams each, are set to mature in seven years, with the settlement and enjoyment date scheduled for December 26, 2024. The issuance was structured into two tranches. The first, known as tranche A, offers a fixed interest rate calculated based on Bank Al-Maghrib’s Treasury bond yield curve, with a final rate of 3.53 percent, which includes a 50 basis point risk premium. The second tranche, labeled B, provides an annually adjustable rate, starting at 3.23 percent for the first year, determined using the 52-week monetary rate and an additional 45 basis point premium.
Investor enthusiasm for the operation was exceptional, with total demand reaching 9.729 billion dirhams. This represents a subscription rate of 6.5 times the initial offering. Despite the overwhelming demand, the bank maintained its planned allocation of 1.5 billion dirhams, dividing it between the two tranches. Tranche A accounted for 944.8 million dirhams, while tranche B received 555.2 million dirhams. The satisfaction rate for both tranches stood at 15.4 percent, emphasizing the high level of competition among investors.
A variety of investors participated in the issuance, highlighting its broad appeal. Collective investment schemes played a dominant role, contributing 6.649 billion dirhams in subscriptions. Insurance companies and pension funds added 580 million dirhams, while other investors mobilized 2.5 billion dirhams. The diversity of these participants reflects the strong confidence in the bank’s financial health and future trajectory.
This operation was managed by Attijari Finances Corp. in an advisory role, with Attijariwafa Bank handling the placement. The proceeds will enhance the bank’s regulatory capital, enabling it to support its ambitious growth plans and fortify its market position.
The success of this bond issuance confirms Attijariwafa Bank’s ability to attract substantial investor interest for strategic financial initiatives. It also underscores its role as a key player in energizing Morocco’s capital markets and supporting the broader economy.
By completing this transaction, Attijariwafa Bank once again demonstrates its resilience, its strategic importance to the Moroccan economy, and its commitment to maintaining a strong and stable financial system.
