Morocco plans to issue euro-denominated bonds for infrastructure funding as it prepares to co-host the 2030 FIFA World Cup. Finance Minister Alaoui emphasizes a shift towards euros over dollars. The bond sale will support several projects, including public works and pension reforms, as the government seeks $6 billion in foreign debt for budgetary purposes.
Morocco is set to re-enter the international bond market with a euro-denominated issuance, its first since 2023, to finance infrastructure projects ahead of co-hosting the 2030 FIFA World Cup. Finance Minister Nadia Fettah Alaoui stated that euros are currently more vital than dollars, indicating the strategic shift in financing priorities.
The bond sale could happen when market stability improves after January’s expected volatility, as the nation waits for favorable conditions. This will be Morocco’s first euro bond since 2020, which previously involved a €1 billion issuance.
Existing euro notes due in March 2026 have seen their yield decline by about one percentage point to 3.03% recently. The upcoming bond issue is part of a larger plan, with lawmakers authorizing $6 billion in new foreign debt for the 2025 budget, potentially raising a third of this through the bond sale.
The funding from the bond will be directed towards extensive infrastructure endeavors, including the expansion of railways, enhancement of the national airline’s fleet, construction of deep-sea ports, and the establishment of desalination plants. Investments are also planned in green hydrogen and renewable energy.
Additionally, Morocco aims to secure $2 billion for necessary pension reforms this year. According to Mark Bohlund, a senior credit research analyst, the bond issuance may occur following the renewal of a flexible credit line from the International Monetary Fund, which helps reduce yields and mitigates external risks.
Projections indicate that Morocco’s total expenditure through 2035, including earthquake recovery costs, will rise to at least $35 billion. The European Union, being Morocco’s largest trading partner, is anticipated to play a vital financing role for the infrastructure projects related to the World Cup hosted jointly with Spain and Portugal.
Morocco’s entry into the euro-denominated bond market signals a critical approach to financing its infrastructure projects ahead of the 2030 World Cup. By focusing on euro issuance over dollars, the country positions itself strategically for upcoming financial requirements, relying significantly on the support of the European Union and securing necessary borrowing from international partners.
Original Source: www.moroccoworldnews.com
