Morocco has issued its first euro-denominated bonds in five years as part of its strategy to finance investments for the 2030 FIFA World Cup, which it will co-host with Spain and Portugal, Bloomberg reports. The issuance consists of two tranches totaling 2 billion euros (approximately 2.2 billion dollars), with maturities of four and ten years. It has attracted strong investor interest, with offers exceeding 6.75 billion euros, according to a source familiar with the matter—surpassing the initial target by 500 million euros. This fundraising effort comes as Morocco ramps up investments in infrastructure and World Cup preparations. To support this momentum, Bank Al-Maghrib recently implemented a second consecutive cut to its key interest rate, aiming to lower borrowing costs and stimulate the local economy. The financial conditions of the issuance have also been adjusted downward from initial estimates. The final spread for the four-year bond was set at 155 basis points above the mid-swap rate, compared to the originally expected 190 basis points. For the ten-year tranche, the spread was set at 215 basis points, also below forecasts. Morocco, which holds the highest credit rating among countries classified as speculative by the three major rating agencies, had previously issued a 2.5 billion dollar loan in 2023, whose performance has strengthened since the start of the year. The bond issuance was managed by BNP Paribas, Citigroup, Deutsche Bank, and JPMorgan Chase, with Lazard serving as an advisor.
