The African Development Bank (AfDB) announced on Friday, October 30, the successful issuance of its first bond denominated in Moroccan Dirhams, with a total value of 1 billion dirhams.
According to official data obtained by Hespress online newspaper, the transaction was structured as a “private placement targeting eligible investors.” The bond has a seven-year maturity with a floating interest rate linked to the Moroccan Overnight Index Average (MONIA).
The Dirham Alongside the Euro and Dollar
This issuance falls within a broader strategy to diversify the financing options provided by the Bank in Morocco. The Moroccan Dirham is thus added to the primary funding currencies used by the institution, led by the Euro and the US Dollar.
The AfDB Group aims through this issuance to enable the institution to “serve a broader client base and provide solutions tailored to their specific needs.”
In the same context, the Bank revealed plans to “establish a dedicated treasury portfolio” for the Moroccan Dirham. Enhancing this portfolio will be made possible, among other measures, by converting part of its foreign currency liquidity. This step aims to support the gradual development of the Bank’s local currency financing capabilities within Morocco.
Why Morocco Was Chosen
According to the African Development Bank, developing local currency financing is a strategic pillar of its operations. Morocco was selected for this pilot initiative based on several factors.
The Bank explained that “the partnership between the Kingdom and the Bank is long-standing, and the volume of the Bank’s operational portfolio in the country is substantial.” Added to this is “the demand expressed by clients to obtain financing in Dirhams, as well as the maturity of the Moroccan financial ecosystem.”
Deepening the National Financial Market
Through this operation, the Bank intends, in cooperation with Moroccan authorities and financial sector stakeholders, to contribute to deepening the national financial market.
The source explained that “this will be achieved notably through the development of hedging instruments and enhancing liquidity in the financial derivatives market.” Furthermore, lessons learned from this experience “will support the gradual expansion into adopting other African currencies.”
The execution of this debut transaction was the result of close collaboration between the Bank, Moroccan authorities, and local financial market participants.
In this regard, the Bank expressed its gratitude to the Ministry of Economy, Finance, and Administrative Reform, Bank Al-Maghrib (the central bank), and the Moroccan Capital Market Authority (AMMC) for their support.
The African Development Bank praised the contribution of Attijari Finances Corp as financial advisor, as well as Attijariwafa Bank and the investment banking arm of the Caisse de Dépôt et de Gestion (CDG Capital) as lead managers for the issuance, commending their roles in structuring the operation and ensuring its success, while thanking investors and all partners involved.
Morocco joined the Bank at its inception and remains a historical partner. Since 1978, the Bank has mobilized nearly 15 billion euros to finance over 150 projects in the Kingdom across strategic sectors such as transportation, energy, water, agriculture, and social protection.
Founded in 1964, the African Development Bank is the continent’s premier multilateral development institution. It comprises 81 member countries, including 54 African nations, with the goal of fostering sustainable economic growth and social progress.
Its authorized capital stands at 240.16 billion Units of Account (equivalent to approximately $325 billion), and it holds a “AAA” credit rating—the highest possible rating.