Photo: Jason Doiy/ALM

Orrick Herrington & Sutcliffe has advised the Kingdom of Morocco on a €1 billion bond issue in the international market, part of the country's efforts to shore up its finances as it battles its second wave of increases in COVID-19 cases.

The bonds, which are Rule 144A/Regulation S private placements, were issued in two €500 million tranches, the first with a maturity of five years and the second with a 10-year maturity.

Morocco intends to use the proceeds from the issue to reduce its budget deficit and increase foreign reserves in light of the health crisis, Orrick said in a statement.

In common with most of North Africa, Morocco first instituted lockdown measures in March to try to contain the crisis. It has been gradually easing restrictions, but a recent upsurge in infections has led to new and more targeted measures.

The crisis has fallen particularly hard on Morocco's tourism sector, which represented 7% of the kingdom's gross domestic product in 2019, according to official figures. Before the crisis hit, Morocco had been taking steps to diversify its economy and attract foreign investment.

Orrick's team on the bond issue was led by Carine Mou Si Ya, a banking and finance and infrastructure partner in Paris; Nell Scott, an M&A, private equity and capital markets partner in London; and Bill Haft, a banking and finance partner in New York.

This is the second time in less than a year that Orrick has helped Morocco tap international capital markets. In December 2019, the firm advised on English and U.S. law in connection with an offering of €1 billion in notes to finance the kingdom's budget deficit. At the time it was the first offering of international notes by Morocco in five years.

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