The Municipal Equipment Fund Launches a Bond Issue of 2 Billion Dirhams

The Municipal Equipment Fund has announced a bond issue amounting to 2 billion dirhams, with a maturity of 15 years and 45 days. The subscription period for this bond will run from December 10 to December 12, 2025, inclusive, as stated in a communiqué from the Authority. The bond consists of two non-listed tranches. For Tranche A, the nominal interest rate is set between 2.8% and 2.9%, which will be reviewed annually. The rate for the first year is based on the average weighted rate for 6 months (180 days) published by Bank Al-Maghrib. Tranche B also features an adjustable interest rate, ranging from 2.76% to 2.81%, which will be revised annually. The rate for the first year is determined by the 52-week Treasury bond rate published by Bank Al-Maghrib on November 26, 2025. The risk premium for Tranche A varies between 55 and 65 basis points, while for Tranche B, it ranges from 45 to 50 basis points.