Morocco’s Attijariwafa Bank has launched the country’s first dirham-denominated capital guaranteed structured bonds.
The eight-year bonds are linked to a basket of 20 international blue chips and offer a fixed 4% coupon in year one and 5% coupons in subsequent years, provided all basket components remain above 80% of their initial levels.In years where a coupon is not attributed, it is saved up and paid out in any successful year that follows.
At maturity the product returns capital plus 80% of any positive performance in the basket.
The notes, which are issued by Attijariwafa Bank’s dedicated issuing entity Somacovam, are available in two classes, one listed on the Casablanca stock exchange and the other a placement, with each class expected to raise between MAD200m ($25m) and MAD300m ($38m).
The product closes on 27 December and strikes 4 January.