Last week it was a Moroccan bank issuing international bonds, and now it’s the government that has global investors in its sights. The North African country plans to launch a €1bn ($1.36bn) eurobond over the next few weeks, sealing a crown as the the continent’s second-largest sovereign eurobond issuer. No prizes for guessing number one (South Africa).
With the prospect of Fed tapering looming increasingly large on the horizon, emerging market entities have been scrabbling to issue debt while the price is still right. On Thursday, Banque Marocaine du Commerce Extérieur (BMCE Bank) joined party when it launched a $300m five-year eurobond at a yield of 6.5 per cent – the largest international note ever to come from a Moroccan financial institution.
The “Genghis bonds” issued by Mongolia last week might already be losing its sparkle as political turmoil rocks the country. But the specter of political risk hasn’t deterred investors from piling in on Morocco’s maiden dollar-denominated bond.
The North African country, which is under pressure to plug budget gap and contain the kind of protests that have brought down regimes in other parts of the Middle East, raised $1.5bn in a dual-tranche offering on Wednesday.