ESQ Legal Practice Magazine JUNE 2014 EDITION

MOROCCO SELLS 1 BILLION EURO BOND AS BORROWING COSTS FALL M orocco sold its first eurodenominated bonds in four years after yields fell to all-time lows and stimulus measures in Europe help boost demand for riskier assets. last week. The ECB took its deposit rate negative, helping demand for higher-yielding assets. “ECB actions are definitely positive for the market,” Will Nef, who helps manage $3 billion in emerging-market bonds at Union Bancaire Privee in Zurich, said by email. “215 basis points looks relatively generous. People are chasing anything that is yielding something given that developed rates in euros have come off so much.” Morocco's economic growth may slow to 3.5 percent this year, Boussaid said, the second time in a month the net oil importer trims growth forecasts amid growing turmoil in the region. hurt by a spending spree that helped the longest serving Arab monarchy contain a wave of revolts that hit the Arab world. Boussaid maintained the budget deficit target for 2014 at 4.9 percent compared with The $105-billion economy added 4.8 percent in 2013 after 5.5 percent in 2013. He said the deficit is forecast to fall to The government issued 1 a better cereals harvest than 3 percent by 2017. Morocco is billion euros ($1.4 billion) of this year's. The government a net oil and gas importer and 10-year bonds at 215 basis budgeted a 4.2 percent its 2014 budget was based on points above midswaps, the expansion in gross domestic country's Economy and product for 2014. On May 16, an oil price of $105 a barrel. Finance Minister Mohamed Budget Minister Driss El Besides the 1 billion euros it Boussaid said in an interview Azami El Idrissi said GDP raised from yesterday's bond yesterday. The yield on growth would be about 4 BNP Paribas SA, sale, Rabat expects the 1.5 Morocco's October 2020 debt percent. Commerzbank AG and billion euros in outstanding has dropped 124 basis points Natixis managed the The government plans to axe external financing needs for year to 3.06 percent, within Moroccan debt deal, the first 2014 to come from subsidies on widely-used five basis points of record low in euro-denominated bonds diesel fuel as of 2015 while international financial on May 30. since the nation sold 1 billion keeping them for cooking gas, organizations including the euros of fixed-income sugar and wheat flour, The North African country World Bank, the Arab securiti

ESQ Legal Practice Magazine JUNE 2014 EDITION | Page 17