Attijariwafa bank uses the bond market to raise no less than 1 billion dirhams with the aim of strengthening its regulatory capital in order to improve its solvency ratio.
The Attijariwafa bank group will raise no less than 1 billion dirhams on the bond market, through a perpetual subordinated bond issue with a loss absorption and coupon payment cancellation mechanism. This is the issue of 10,000 perpetual subordinated bonds with a nominal value of 100,000 DH. This issue has the main objective of “strengthening the current regulatory capital and, consequently, improving the solvency ratio of Attijariwafa bank.
The bank wants to finance its organic development in Morocco and internationally and, in doing so, anticipate the various regulatory developments in the countries of presence”, explains the bank in the note d’opération approved by the Moroccan Capital Market Authority. (AMMC).
Structure of the offer
The total amount of the bond loan is divided into two tranches: tranche A with perpetual maturity and revisable rate every 10 years, not listed on the Casablanca Stock Exchange, with a ceiling of 1 billion dirhams and a nominal value of 100,000 DH; and tranche B with perpetual maturity and an annually revisable rate, not listed on the Casablanca Stock Exchange, with a ceiling of 1 billion dirhams and a nominal value of 100,000 dirhams. The total amount awarded on the two tranches may in no case exceed the sum of 1 billion dirhams.
“In the event that the bond loan is not fully subscribed, the amount of the issue will be limited to the amount actually subscribed”, indicates the bank.
Subscription to these bonds, as well as their trading on the secondary market, are reserved for investors qualified under Moroccan law, among others, undertakings for collective investment in transferable securities (UCITS), financial companies, credit institutions, companies approved insurance and reinsurance companies as well as retirement and pension organisations. The funds collected through this issue will be classified as additional tier 1 capital, and will contribute to strengthening Attijariwafa bank’s regulatory capital.
Sanae Raqui / ECO Inspirations