Last March, Morocco’s Treasury successfully raised 2 billion euros on international markets under remarkably favorable conditions, according to a report from Attijari Global Research (AGR). Thanks to a particularly supportive environment, the Kingdom was able to secure highly attractive interest rates, benefiting from Europe’s monetary easing trend.
AGR points out that timing played a crucial role in the success of this operation. Moroccan authorities skillfully avoided periods of market stress and capitalized on the European Central Bank’s rate cuts, which began in June 2024 as inflation pressures eased. The ECB’s 150 basis point reduction in policy rates led to a notable drop in euro-denominated sovereign bond yields, creating an ideal window for Morocco to act.
Choosing the euro as the currency for this bond issue was a strategic move. It not only aligns financing with upcoming infrastructure investments tied to the 2030 World Cup but also helps shield the country from currency risk, especially given heightened tensions from the ongoing trade wars.
Thanks to a significant improvement in liquidity spreads, Morocco secured a financing cost of just 4.75%, nearly half the rates currently paid by other African countries like Egypt, Côte d’Ivoire, or Kenya, where sovereign bond costs exceed 8%.
This operation also signals a shift in the Treasury’s overall financing strategy. AGR notes that nearly 89% of Morocco’s projected net financing needs for 2025 will now be met through external borrowing, a sharp increase compared to the 40% average over the previous two years.
Oversubscribed three times, this fundraising marks Morocco’s first euro-denominated bond issue since 2020 and its first appearance on international markets in two years. It underscores the Kingdom’s enduring sovereign appeal, even amid persistent global uncertainties.
With this latest move, Morocco now ranks eighth among emerging markets that successfully tapped euro financing in 2025, following countries like Croatia, Poland, and Romania.
