he African Development Bank has completed its first bond issue denominated in Moroccan dirhams, totaling one billion, announced on October 30. The operation took the form of a private placement with qualified investors: the bond runs for seven years and carries a floating rate indexed to MONIA, the Moroccan overnight interest rate index. Attijari Finances Corp advised the Bank, while Attijariwafa bank and CDG Capital led the placement.
Morocco serves as the pilot country for the move, which the Bank justifies by the strength of its long-standing partnership with the Kingdom, the weight of its portfolio of operations there, its clients’ demand for dirham financing and the maturity of the Moroccan financial ecosystem. The dirham now joins the euro and the US dollar among its funding currencies, and the institution is considering a dedicated dirham treasury portfolio, fed in part by converting foreign-currency liquidity. This first billion will thus let the Bank offer local-currency financing to its Moroccan clients.
Photo: Citizen59, CC BY 3.0.
Banque africaine de développement - African Development Bank completes inaugural Moroccan dirham bond issuance of MAD 1 billion, strengthening local currency financing in Africa
