Morocco has priced a €2.25 billion dual-tranche euro-denominated bond, tightening spreads from initial guidance after attracting strong investor demand across both maturities.

The sovereign sold €1.25 billion of 8-year notes at a spread of 170 basis points over mid-swaps, alongside €1.00 billion of 12-year bonds at 200 basis points over mid-swaps.

The final pricing compares with initial price thoughts in the area of mid-swaps plus 200 basis points for the 8-year tranche and 230 basis points for the 12-year tranche, indicating spread compression of around 30 basis points on each tranche during the marketing process.

Demand was robust, with order books exceeding €3.0 billion for the 8-year notes and €2.2 billion for the 12-year tranche, excluding joint lead manager interest. Global books were subsequently closed subject to allocations.

The bonds carry fixed annual coupons and were issued under Rule 144A/Regulation S format, targeting international institutional investors. Settlement is scheduled for 26 May 2026. The notes are expected to be listed on the London Stock Exchange and cleared via Euroclear and Clearstream.

BNP Paribas, Citi, Deutsche Bank and J.P. Morgan acted as joint lead managers on the transaction, while Lazard served as financial adviser to the kingdom.  

Rabat last tapped Eurobond market in April 2025 with a dual-tranche €2 billion issuance; the 10-year tranche was priced at a spread of 215 basis points of mid swaps, and the four-year tranche was at 155 basis points over mid swaps.

The fresh issuance comes as Morocco continues to tap international markets to diversify funding sources and manage its external financing needs. The country’s public external debt stood at $56.7 billion at the end of 2025, equivalent to 30.4% of GDP.

The sovereign is rated Ba1 with a positive outlook by Moody’s, BBB- with a stable outlook by S&P, and BB+ stable by Fitch.

(Writing by Ahmad Mousa; editing by Seban Scaria)
Ahmad.mousa@lseg.com