Morocco has made a strong comeback on the international bond market, raising €2 billion through a dual-tranche eurobond issuance that drew massive interest from investors, according to reporting by Bloomberg. The offering, split between 4-year and 10-year maturities, was met with overwhelming demand, with total orders nearing €7 billion.
This marks Morocco’s first return to the European financial markets in five years, and it did so under terms widely seen as favorable. The yield spreads came in at 155 basis points for the 4-year notes and 215 basis points for the 10-year tranche—both lower than anticipated, signaling a high level of investor confidence in the country’s sovereign creditworthiness.
Despite not having an investment-grade rating, Morocco sits at the top of the sub-investment-grade category across all three major credit rating agencies. This latest move reinforces its standing as a credible and stable borrower in the eyes of global financial markets. It’s also worth noting that this isn’t Morocco’s first successful outing in recent years; back in 2022, Rabat secured $2.5 billion through a similar international bond issue.
To pull off the deal, the Moroccan Treasury teamed up with four major global banks—BNP Paribas, Citi, Deutsche Bank, and JP Morgan. These financial powerhouses led a strategic roadshow in Paris and London earlier in the week, where they presented Morocco’s economic fundamentals to institutional investors and gauged market appetite.
Lazard acted as the Treasury’s exclusive financial advisor for the operation, helping to shape the strategy behind what is now being hailed as a smooth and well-executed return to international markets.
