Morocco twice oversubscribed a €1bn bond issue with a one year maturity and a coupon of 3.5% which closed on 13 June in London. The issue was the first to be euro-denominated, a move Finance Minister Muhammad Boussaid says was intended to diversify its investor base, following dollar-denominated debt issues in recent years. Morocco has no further need for international bond issues in the next few months due to the support for his country from multilateral lenders like the World Bank, he adds.
The bond attracted banks, insurance and asset management companies and sovereign funds, mainly from Europe and some from the US and the Gulf. Mr Boussaid says the bond proved attractive due to Morocco’s “economic, political, social and financial stability.” The minister told London-based daily Asharq al-Awsat that Morocco attracted $4bn in direct foreign investment in 2013, up 23% on the previous year. He also said that the government managed to reduce the fiscal deficit in 2013 to 5.5% of GDP from 7.3% in 2012. (CONTINUED - 371 WORDS)