Morocco mulls first international bond offering in a year

Morocco is considering issuing an international bond in 2024, its first in a year, according to a Bloomberg interview with Finance and Economy Minister, Nadia Fettah Alaoui.

“We don’t feel any pressure, but we are watching for the best timing for the issue,” she said. 

The Kingdom last issued foreign debt in March 2023 when it raised $2.5 billion through five-year and 10.5-year notes.  

In 2021, U.S. rating agency S&P downgraded Morocco’s credit rating making it more expensive for the country to issue debt. It blamed the downgrade on Morocco’s growing budget deficit and an economic contraction.

The North African nation faced increased subsidy spending due to Russia’s invasion of Ukraine. Now, it is redirecting support to vulnerable households as advised by the International Monetary Fund.

Higher receipts this year, including from taxes, helped cut the budget deficit by almost 90% annually.

In April of this year, S&P upgraded Morocco’s rating from “stable” to “positive” highlighting Morocco’s resilience over the past five years.

"The positive outlook reflects our expectations that Morocco will build on its recent track record of implementing socio-economic and fiscal reforms, paving the way for inclusive growth and reduced budget deficits," it said in a report. 

Among African nations that have issued Eurobonds, Morocco has the highest credit rating, according to Bloomberg.