Stocks Market
CFG Bank Successfully Completes 500 M DH Subordinated Bond Issue
CFG Bank announced the full subscription of its 500 million-dirham subordinated bond issuance. The ten‑year, fixed‑rate tranche was allocated entirely to institutional investors, strengthening the bank’s capital base and supporting its growth plans. The bond, approved by the Moroccan Capital Market Authority (AMMC) on 12 December 2025, carries a 3.69 % coupon – the 10‑year Treasury rate plus a 70‑basis‑point risk premium – and will be repaid at maturity.
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Issuance Overview
CFG Bank successfully closed its subordinated bond offering, raising a total of 500 million Moroccan dirhams (MAD). The prospectus received approval from the Moroccan Capital Market Authority (AMMC) on 12 December 2025.
Structure of the Deal
- Tranche A: Fixed‑rate, 10‑year maturity, principal repayment at maturity (in‑fine). Fully allocated.
- Tranche B: Annually reset rate – not placed.
Pricing Details
The fixed coupon on Tranche A is set at 3.69 %. This rate reflects the 10‑year Treasury yield published by Bank Al‑Maghrib on 17 December 2025, plus a risk premium of 70 basis points.
Investor Participation
All 500 million MAD were taken up by collective investment schemes (OPCVM). The bonds have a nominal value of 100,000 MAD each, are unlisted, and are tradable over‑the‑counter.
Strategic Rationale
Through this subordinated issuance, CFG Bank aims to:
- Boost its regulatory capital and improve the solvency ratio.
- Finance the expansion of its banking activities.
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