Lower rates on the bond market in the wake of the international exit from the Treasury.
The bond market reassured In a market agitated by uncertainties and the government’s growing need for financing, the bond market has experienced increased volatility in recent weeks.
Interest rates registered new annual highs at the end of November and all eyes are on both the decisions of Bank Al-Maghrib on December 15 and the management of the debt by the State in the short term, especially on the international component. On the first point, the operators will therefore be fixed in a few days.
On the other hand, concerning Morocco’s external debt, the government has been studious for several days. He first multiplied loans and bilateral loan promises with Japan, Germany or the World Bank, before making an exit on the financial market on Tuesday, with a raising of $ 3 billion under conditions that operators seem to appreciate.
This issue, which marked Morocco’s return to the Dollar compartment after an absence of 7 years, was a resounding success with international investors, of whom 478 were served. The order book exceeded $ 13 billion and the issue was oversubscribed more than 4 times. It made it possible to renew contact with American investors, diversify our sources of financing and establish new benchmarks on the Moroccan credit curve.
This issue, which was placed with quality investors, in particular fund managers, insurance companies and pension funds, received a favorable reception reflected by a wide geographical distribution, in particular the United States, the United Kingdom. United, Europe, Asia and the Middle East.
For investors, these debts denominated in foreign currencies will limit the constraints on the domestic market. Moreover, during the auction on Tuesday, December 8, Treasury rates contracted on all maturities. This ranges from -7bp over the 5-year to -10.6 over the 15-year.
The 26 Weeks was issued with a rate down 10 basis points. The treasury only raised 400 million dirhams, while investor bids were over 9.4 billion dirhams. This auction was carried out while the market was aware that a dollar lift was imminent and expected during the day.
The Treasury could now ease off on the domestic market and allow the bond market to end 2020 with an honorable performance for investors, before opening the 2021 chapter which promises to be at least as agitated as 2020.
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