Crédit du Maroc has successfully completed the issuance of a perpetual subordinated bond valued at 500 million Moroccan dirhams. This financial operation, featuring mechanisms for loss absorption and coupon payment cancellation, saw a subscription rate of 152%, reflecting significant confidence from institutional investors. The bank highlighted this strong interest in a statement published on the website of the Moroccan Capital Market Authority (AMMC).
According to the details of the operation, 25 institutional investors, primarily collective investment schemes (OPCVM), participated in the issuance. Many of them showed a preference for Tranche B, which offers an annually adjustable interest rate.
The operation’s specifics were outlined in a prospectus approved by the AMMC on November 20, 2024, under reference number VI/EM/034/2024. For Tranche A, which is not listed, the interest rate is revised every ten years. During the first decade, the rate is based on the ten-year Treasury yield curve published by Bank Al-Maghrib on November 29, 2024, set at 3.32%. This rate is supplemented by a risk premium ranging from 225 to 235 basis points, resulting in an effective rate of between 5.57% and 5.67% for the initial ten-year period.
Tranche B, which adjusts its interest rate annually, starts with a base rate of 2.73% for the first year. This is determined by the one-year Treasury yield curve as published by Bank Al-Maghrib on the same date. A risk premium of 205 to 215 basis points is added, setting the effective rate between 4.78% and 4.88%.
The high level of subscription and robust participation from institutional investors highlight Crédit du Maroc’s strong standing in the market and its ability to inspire confidence among key stakeholders. This successful issuance reflects the bank’s strategic positioning and the trust it enjoys within Morocco’s financial sector.
