The Banque Centrale Populaire (BCP) Group capped off 2024 on a high note, securing an overwhelming success with its perpetual subordinated bond issue worth 1.2 billion Moroccan dirhams (MAD). Conducted from December 25 to 27, the operation recorded a stunning oversubscription rate, exceeding 11 times the initial target—a clear testament to the unwavering trust of qualified investors in this Moroccan banking giant.
The bond attracted robust participation from a diverse pool of qualified investors, including Collective Investment Schemes (OPCVMs) and financial institutions. This unprecedented enthusiasm not only underscores BCP’s financial stability but also highlights its reputation as a trusted player in the market.
The bond was divided into two tranches:
- Tranche A: Adjustable annually, offering a 4.54% interest rate in the first year. This rate combines Bank Al-Maghrib’s 52-week benchmark (2.54%) with a risk premium between 200 and 210 basis points.
- Tranche B: Adjustable every five years, with an interest rate ranging from 4.93% to 5.03%. This rate incorporates the five-year sovereign yield and a risk premium of 210 to 220 basis points.
BCP issued 12,000 perpetual subordinated bonds, each with a nominal value of 100,000 MAD. Allocated through a French auction process, priority was given to Tranche A. The bonds are over-the-counter negotiable and come without any repayment guarantees, aligning with the characteristics of perpetual subordinated bonds.
BCP’s strategy with this issuance reflects its commitment to diversifying funding sources while bolstering regulatory capital in line with international prudential standards. A dedicated financial advisor and global coordinator ensured optimal placement in the Moroccan market.
This achievement also signals promising growth prospects and the resilience of BCP amid economic challenges. By thanking investors for their trust, BCP reaffirmed its role as a trailblazer in Morocco’s financial sector.
With this perpetual bond issue, BCP once again cements its status as a key player in financial innovation, championing the development of the national and regional economy. As the dust settles on 2024, the group looks poised to continue its upward trajectory, backed by robust investor confidence and a visionary approach to banking.
