(Repeating to additional subscribers)
* Sale larger than initially expected
* Bonds sold at 200 bps/midswaps, tighter end of guidance
* Bonds to yield 4.563 pct, coupon at 4.5 pct
NEW YORK, Sept 28 (Reuters) - Morocco on Tuesday sold 1 billion euros worth of euro-denominated, 10-year bonds, returning to international capital markets for the first time in more than three years, Thomson Reuters’ IFR reported.
The new bonds were priced at 99.495 with a coupon of 4.5 percent. They will pay investors an yield of 4.563 percent, or 200 basis points over midswaps, IFR said.
Morocco took advantage of the strong market appetite for yield to price the bonds at the lower end of the yield guidance provided by the lead of the managers — HSBC, Barclays and Natixis.
The amount issued was above initial expectations of some 750 million euros. Fund managers in London heard that demand for the bonds was around 2 billion euros.
“Demand is adequate. It’s not particularly cheap to outstanding issues but it’s a name that hasn’t been in the market for a while and is designed for European portfolios,” one fund manager in London said.
Morocco last visited international capital markets in June 2007, when it raised 500 million euros with the sale of 10-year bonds that priced at 255 basis points over midswaps. (Additional reporting by Sujata Rao in London)