Morocco says satisfied with bond reopening, prepares sukuk
Casablanca, Morocco - Morocco is satisfied with a $750 million bond reopening even though the U.S. market imposed discretionary rules until the subscription process is completed, Finance Minister Nizar Baraka said on Thursday.
Source : https://www.marocafrik.com/english/Morocco-says-sa...
The North African kingdom raised $750 million on Wednesday in a two-part reopening of its $1.5 billion bond, with $500 million for the $1 billion 4.25 percent (Dec 2022) and $250 million for the $500 million 5.5 percent (Dec 2042).
"We are satisfied," Baraka told Reuters.
Following loan agreements with the African Development Bank, the Islamic Development Bank and the World Bank, among others, Morocco is preparing to issue its first sukuk bonds.
"It will be the same amount as the reopening of the bond, maybe more if the market is favourable," a finance ministry source said.
Last January, parliament approved legislation allowing the government and companies to issue sukuk, in a move interpreted by analysts as a break with the sensitivity of the Moroccan government about resorting to Islamic finance.
"If there is no current conventional bond, we would raise the whole need in sukuk," the source said.
Cash-strapped Morocco is considering several reforms in the pension and taxation systems, provoking fears of instability while the government is facing the euro crisis and the continuing ripples in the region of the Arab Spring.
The second government party is threatening to quit the coalition unless the Islamist-led government moderates plans for sweeping cuts to subsidies on food and energy.
The political circles around King Mohammed want to avoid a drop in living standards and prevent a return to protests that he brought under control in 2011 with social spending, robust policing and constitutional reforms that paved the way for the PJD (Justice and Development Party) to come to power.
Communication Minister Mustapha Khalfi said the cabinet will continue to make reforms despite resistances.
"I want to underline the government's determination to pursue reforms and assume its responsibilities," he was quoted as saying by the state news agency.
"We are satisfied," Baraka told Reuters.
Following loan agreements with the African Development Bank, the Islamic Development Bank and the World Bank, among others, Morocco is preparing to issue its first sukuk bonds.
"It will be the same amount as the reopening of the bond, maybe more if the market is favourable," a finance ministry source said.
Last January, parliament approved legislation allowing the government and companies to issue sukuk, in a move interpreted by analysts as a break with the sensitivity of the Moroccan government about resorting to Islamic finance.
"If there is no current conventional bond, we would raise the whole need in sukuk," the source said.
Cash-strapped Morocco is considering several reforms in the pension and taxation systems, provoking fears of instability while the government is facing the euro crisis and the continuing ripples in the region of the Arab Spring.
The second government party is threatening to quit the coalition unless the Islamist-led government moderates plans for sweeping cuts to subsidies on food and energy.
The political circles around King Mohammed want to avoid a drop in living standards and prevent a return to protests that he brought under control in 2011 with social spending, robust policing and constitutional reforms that paved the way for the PJD (Justice and Development Party) to come to power.
Communication Minister Mustapha Khalfi said the cabinet will continue to make reforms despite resistances.
"I want to underline the government's determination to pursue reforms and assume its responsibilities," he was quoted as saying by the state news agency.
Source : https://www.marocafrik.com/english/Morocco-says-sa...