Doha – Morocco is preparing to return to the international bond market with a euro-denominated issuance, marking its first such move since 2023, as the North African country gears up to finance major infrastructure projects ahead of co-hosting the 2030 FIFA World Cup.
“Today we need euros more than dollars,” said Finance and Economy Minister Nadia Fettah Alaoui during an interview at a conference in AlUla, Saudi Arabia.
Morocco “can be ready anytime” for the bond sale but is waiting for January’s market volatility to subside, she stated.
This will be the government’s first euro-denominated bond since 2020, when Morocco issued a €1 billion bond with two €500 million tranches, following a dollar issuance in 2023 that raised $2.5 billion through two $1.25 billion tranches with 5-year and 10-year maturities.
The yield on Morocco’s existing euro notes due in March 2026 has decreased by approximately one percentage point since early 2025, reaching 3.03% on Wednesday.
The planned bond issue comes as part of a broader financing strategy, with lawmakers setting a $6 billion ceiling for new foreign debt in the 2025 budget bill.
The bond sale is expected to raise one-third of this amount, while bilateral and institutional partners will provide the remaining funds.
The financing will support various infrastructure projects, including railway expansion, fleet enhancement for the national carrier, construction of two deep-sea ports, and development of twelve desalination plants.
The country also plans to invest in green hydrogen and renewable energy projects.
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Additionally, the government needs to secure at least $2 billion for pension reforms scheduled for this year.
Mark Bohlund, senior credit research analyst at Redd Intelligence, said Morocco might issue the bonds after securing the renewal of a flexible credit line from the International Monetary Fund.
“It lowers the yields and offers a buffer against potential external shocks,” Bohlund asserted.
According to Bloomberg calculations based on government data, Morocco’s total spending through 2035, including costs from the 2023 earthquake, will reach a minimum of $35 billion.
The European Union, as Morocco’s primary trading partner, is expected to play a crucial role in financing these infrastructure projects, particularly those related to the 2030 World Cup, which Morocco will host alongside Spain and Portugal.
