Bank of Africa: Note d’opération subordinated bond issue


Transaction note

Bank Of Africa

Issuance of subordinated bonds for a maximum total amount of 1,000,000,000 MAD.

The prospectus approved by the AMMC consists of:

  • This securities note;
  • Bank Of Africa’s registration document for the 2021 financial year and registered by the AMMC on June 16, 2022 under reference EN/EM/009/2022.

Tranche A

Tranche B

(Fixed- Unlisted)

(revisable annually – Not Listed)

Ceiling

1,000,000,000 MAD

Maximum number

10,000 subordinated bonds

titles

Nominal value per unit

MAD 100,000

Maturity

10 years

10 years

Negotiability of securities

OTC (Off-exchange)

Facial interest rate

Principal repayment

Risk premium

Guaranteereimbursement

Fixed,

Revisable annually,

With reference to the benchmark yield curve

For the first year the nominal interest rate

of the secondary market in Treasury bills of

is the full rate 52 weeks (monetary rate)

maturity 10 years, as published by

determined with reference to the interest rate curve

Bank Al Maghrib dated June 22, 2022,

reference of the secondary BDT market, as

plus a risk premium of between

that it will be published by Bank Al-Maghrib in

75 bps and 85 bps.

dated June 22, 2022, increased by a premium of

risk between 70 bps and 80 bps.

In the end

In the end

Between 75 bps and 85 bps.

Between 70 bps and 80 bps.

This issue is not subject to any particular guarantee.

French auction method with priority to tranche A (at a fixed rate), then to tranche B

Allocation method

(at an annually revisable rate)

Subscription period: from June 23 to June 27, 2022 inclusive

Subscription to these bonds is strictly reserved for qualified investors under Moroccan law listed in this note d’opération.

Advisory body

Placement agency

MOROCCAN CAPITAL MARKET AUTHORITY VISA

In accordance with the provisions of the AMMC circular, issued pursuant to Article 5 of Dahir No. 1-12-55 of December 28, 2012 promulgating Law No. 44-12 relating to public calls for savings and the information required of legal persons and organizations making public calls for savings, the prospectus was approved by the AMMC on June 16, 2022 under reference No. VI/EM/015/2022.

This securities note is only part of the prospectus approved by the AMMC. This is made up of the following documents:

  • This securities note;
  • Bank Of Africa’s registration document for the 2021 financial year and registered by the AMMC on June 16, 2022 under reference EN/EM/009/2022.

Bank of Africa Transaction Note – Issuance of subordinated bonds

WARNING

The visa of the Moroccan Capital Market Authority (AMMC) concerns the prospectus composed of:

  • This securities note;
  • Bank Of Africa’s registration document for the 2021 financial year, registered by the AMMC on June 16, 2022 under reference EN/EM/009/2022.

Potential investors are called upon to read the information contained in all of the aforementioned documents before making their decision to participate in the operation covered by this securities note.

The visa of the Moroccan Capital Market Authority (AMMC) does not imply either approval of the opportunity of the operation or authentication of the information presented. It was awarded after examining the relevance and consistency of the information given in view of the operation proposed to investors.

The attention of potential investors is drawn to the fact that an investment in financial instruments involves risks.

The AMMC does not comment on the appropriateness of the proposed transaction or on the quality of the issuer’s situation. The AMMC visa does not constitute a guarantee against the risks associated with the issuer or the securities offered within the framework of the operation covered by this prospectus.

Thus, investors must ensure, prior to subscription, that they have a good understanding of the nature and characteristics of the securities offered, as well as that they control their exposure to the risks inherent in said securities.

To this end, the investor is called upon to:

  • Carefully read all the documents and information provided to it, and in particular those appearing in the “Risk Factors” section indicated in this securities note and in the above-mentioned reference document;
  • Consult, if necessary, any professional competent in matters of investment in financial instruments.

The aforementioned prospectus is not intended for persons whose laws of the place of residence do not authorize participation in the proposed operation.

The persons in whose possession the said prospectus may come into their possession are invited to obtain information and to comply with the regulations on which they depend in terms of participation in this type of operation.

The organization in charge of placement will only offer the financial instruments, subject of the aforementioned prospectus, in accordance with the laws and regulations in force in any country where it will make such an offer.

Neither the Moroccan Capital Market Authority (AMMC) nor BMCE Capital Conseil incurs any liability due to non-compliance with these laws or regulations by the organization in charge of the placement.

The subordinated obligation differs from the traditional obligation because of the rank of claim contractually defined by the subordination clause. The effect of this subordination clause being to condition, in the event of liquidation of the issuer, the repayment of the bond on the satisfaction of all other traditional, privileged or unsecured debts.

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