Morocco is preparing to sell bonds on the international market for the first time since 2023, as confirmed by the Moroccan Finance and Economy Minister to Bloomberg. The decision is driven by large-scale reforms and a multi-billion-dollar spending plan in preparation for co-hosting the 2030 FIFA World Cup. Nadia Fettah Alaoui mentioned that the bond issue will likely be denominated in euros, marking the first time since 2020 that the government will issue euro-denominated bonds, following a dollar-denominated sale two years ago. «At this moment, we need euros more than dollars», Alaoui stated. The Moroccan government is awaiting a stabilization in market conditions before moving forward with the bond sale. The European Union is Morocco's primary trading partner, and companies in the EU are keen to finance the country's major infrastructure projects. These include expanding the railway network, upgrading the national airline's fleet, and constructing two new deep-sea ports. Morocco is also committed to developing desalination plants, renewable energy, and green hydrogen as part of its broader economic plans. Furthermore, the government is aiming to raise over $2 billion for pension reforms this year. For the 2025 fiscal year, lawmakers have set a $6 billion ceiling on new foreign debt, with one-third of this amount expected to come from bond sales. The remainder will be funded through bilateral and institutional partners. Total spending through 2035, which includes costs from the 2023 earthquake, is projected to exceed $35 billion, based on calculations from Bloomberg using government data. Mark Bohlund, senior credit research analyst at Redd Intelligence, told Bloomberg that Morocco will likely proceed with the bond issuance after renewing a flexible credit line with the International Monetary Fund (IMF). This would reduce yields and provide a safeguard against potential external financial shocks.
