The Moroccan Capital Market Authority (AMMC) announced that it had approved, on Friday, a prospectus relating to the issuance by Bank Of Africa (BOA) of a perpetual subordinated bond with a mechanism for absorbing losses and cancelling coupon payments, for a maximum total amount of 500 million dirhams (MDH) in principal.

The allocation method consists of a French-style auction with priority to band A (at a rate that can be revised every 5 years), then to band B (at a rate that can be revised annually), according to an AMMC press release.

The bank plans to issue 5,000 perpetual subordinated bonds with a nominal value of 100,000 dirhams. The total amount of the transaction is 500 MDH, distributed as follows: a slice A with perpetual maturity, at a rate that can be adjusted every 5 years, not listed on the Casablanca Stock Exchange, with a ceiling of 500 MDH and a nominal unit value of 100,000 Dh, and a perpetual maturity, at a rate that can be adjusted annually, not listed on the Casablanca Stock Exchange, with a ceiling of 500 MDH and a nominal unit value of 100,000 Dh, according to a note presenting the operation. The subscription period runs from June 22 to June 26, 2023 inclusive, adds the same source