Bank of Africa wants to raise 1 billion dirhams

The subscription period runs from June 23 to June 27, 2022 inclusive for the two tranches.

The AMMC approved the prospectus relating to the issuance of a subordinated bond loan by Bank Of Africa (BOA). This is the issue of 10,000 subordinated bonds with a nominal value of 100,000 DH. This issue aims to “strengthen the current regulatory capital and, consequently, strengthen the solvency ratio of Bank Of Africa, finance the organic development of the bank in Morocco and internationally and anticipate the various regulatory developments in the country of presence”, specifies the bank. The maximum amount in principal of the operation amounts to 1 billion DH divided into two tranches (A and B) with a maturity of 10 years each, not listed on the Casablanca Stock Exchange, with in fine of the principal, a ceiling of one billion DH and a nominal value of 100,000 dirhams each. The total amount allocated under the two tranches A and B must in no case exceed the sum of one billion DH. Tranche A will be at a fixed rate while tranche B will be at a variable rate that can be reviewed annually.

The risk premium will be between 75 and 85 basis points for the first tranche and between 70 and 80 basis points for the second. The allocation method adopted is that of the French auction with priority to tranche A (at a fixed rate), then to tranche B. The subscription period runs from June 23 to 27, 2022 inclusive for both tranches. The Moroccan Capital Market Authority (AMMC) approved the prospectus relating to the issuance of a subordinated bond loan by Bank Of Africa (BOA). This is the issue of 10,000 subordinated bonds with a nominal value of 100,000 DH. This issue aims to “strengthen the current regulatory capital and, consequently, strengthen the solvency ratio of Bank Of Africa, finance the organic development of the bank in Morocco and internationally and anticipate the various regulatory developments in the country of presence”, specifies the bank. The maximum amount in principal of the operation amounts to 1 billion DH divided into two tranches (A and B) with a maturity of 10 years each, not listed on the Casablanca Stock Exchange, with in fine of the principal, a ceiling of one billion DH and a nominal value of 100,000 dirhams each. The total amount allocated under the two tranches A and B must in no case exceed the sum of one billion DH.

Tranche A will be at a fixed rate while tranche B will be at a variable rate that can be reviewed annually. The risk premium will be between 75 and 85 basis points (bps) for the first tranche and between 70 and 80 bps for the second. The allocation method adopted is that of the French auction with priority to tranche A (at a fixed rate), then to tranche B. The subscription period runs from June 23 to 27, 2022 inclusive for both tranches. The effective date is June 29. In addition, subscription is reserved for undertakings for collective investment in transferable securities (UCITS), financial companies, credit institutions, approved insurance and reinsurance companies, Caisse de Dépôt et de Gestion and retirement and pension organisations. The purpose of this limitation is to “facilitate the management of subscriptions on the primary market”. However, any investor wishing to acquire the bonds may obtain them on the secondary market. The effective date is June 29. In addition, subscription is reserved for mutual funds, financial companies, credit institutions, approved insurance and reinsurance companies, Caisse de Dépôt et de Gestion and retirement and pension organisations. The purpose of this limitation is to “facilitate the management of subscriptions on the primary market”. However, any investor wishing to acquire the bonds may obtain them on the secondary market.




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