Crédit du Maroc has marked a significant milestone in its strategic development with the issuance of a perpetual subordinated bond, approved by the Moroccan Capital Market Authority (AMMC). This groundbreaking financial operation aims to strengthen the bank’s regulatory capital while presenting an attractive opportunity for institutional investors. With features such as loss absorption and the ability to suspend coupon payments, the bond is designed to meet both financial stability requirements and market demands for innovative investment instruments.
Capped at one billion dirhams, the issuance is divided into two distinct tranches, each tailored to specific market needs. The first tranche, known as Tranche A, offers an interest rate adjustable every ten years, appealing to investors seeking long-term predictability. Meanwhile, Tranche B is more adaptable, with an interest rate that resets annually in response to changes in the monetary market. Rates for both tranches will be determined based on the Treasury bond yield curve published by Bank Al-Maghrib on November 29, 2024, ensuring they align with prevailing market benchmarks.
The allocation method follows a French auction system, prioritizing Tranche B before moving to Tranche A. Risk premiums, ranging from 205 to 235 basis points, have been carefully calibrated to reflect the characteristics of each tranche while offering competitive returns. Though the bonds will be traded over-the-counter, their perpetual nature underscores their role as a solid pillar in the bank’s financial structure, capturing the interest of institutional investors.
The subscription period, scheduled from December 2 to December 4, 2024, provides a key opportunity for investors to participate in this forward-looking initiative. Detailed information about the issuance is available through Crédit du Maroc’s headquarters, its website, and the AMMC portal. The prospectus includes the bank’s 2023 financial report, updates for the first half of 2024, and a recent AMMC-approved addendum from October 2024, ensuring full transparency for stakeholders.
This bond issuance highlights Crédit du Maroc’s proactive approach to fortifying its financial resilience while advancing innovation in the Moroccan bond market. By meeting rigorous standards of transparency and financial solidity, the bank not only reinforces its own position but also contributes to modernizing Morocco’s financial ecosystem. This operation signals a clear commitment to shaping the future of investment solutions in the region.
