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Credit Agricole Morocco Secures $100M Year-End Bond Issue Amid Strategic Transitions

Credit Agricole Morocco Secures $100M Year-End Bond Issue Amid Strategic Transitions
Thursday 02 January 2025 - 11:20 By: Dakir Madiha
Zoom

Credit Agricole of Morocco (CAM) has concluded 2024 with a robust MAD 1 billion ($100 million) subordinated bond issuance, signaling strong market confidence in the institution's financial standing. The December 31 operation was strategically structured into two equal tranches of MAD 500 million ($50 million) each, targeting qualified investors.

The carefully balanced structure features two distinct components: one tranche comprises non-listed subordinated bonds with a revisable rate and 10-year maturity, while the second consists of fixed-rate non-listed subordinated bonds sharing the same maturity period.

The funds raised through this issuance are designated for dual purposes: financing various economic sectors, with particular emphasis on agricultural and rural development initiatives, while simultaneously strengthening the bank's regulatory capital foundation.

This bond issuance follows a significant ownership transformation that occurred in June 2024, when Credit Agricole S.A. of France completed its full exit from the Moroccan market. The French banking group divested its remaining 15% stake in Credit du Maroc to the Moroccan group Holmarcom. This final step came after an earlier substantial transaction in December 2022, when Credit Agricole S.A. sold a 63.7% stake to Holmarcom, executing an agreement initially announced in April 2022.

The complete withdrawal process was finalized following receipt of necessary regulatory approvals and the completion of Credit du Maroc's autonomization process, as detailed in Credit Agricole S.A.'s official communication from Montrouge, France.

This strategic financial move positions CAM to strengthen its role in Morocco's banking sector while maintaining its focus on agricultural and rural development financing.

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