Casablanca – Akwa Group, one of Morocco’s leading conglomerates, has marked a significant achievement in the financial sector by raising a total of $108 million through private bond placements. This successful fundraising effort was carried out by the group’s listed subsidiaries, Afriquia Gaz and Maghreb Oxygène, who collectively issued bonds worth approximately $108 million. The funds will support the group’s strategic goals of optimizing its debt structure, financing future investments, and enhancing its presence in various sectors.

Afriquia Gaz takes the lead in energy sector funding

Afriquia Gaz, the flagship energy subsidiary of Akwa Group, led the bond issuance with $61.86 million offering. This issuance is part of the company’s broader strategy to diversify its sources of financing and ensure the sustainability of its operations. The bonds, which are structured as a single tranche with a bullet repayment at the end of five years, are designed to finance Afriquia Gaz’s ongoing investments in the Moroccan energy market. The funds will also be used to renew a bond loan due in 2025, demonstrating the company’s commitment to maintaining a robust financial position amidst evolving market conditions.

Afriquia Gaz’s role in Morocco’s energy transition is particularly significant, as the company is actively involved in the distribution of fuels and gas, as well as the development of liquefied natural gas (LNG). This initiative supports Morocco’s long-term sustainability goals by ensuring a stable energy supply while reducing dependence on imported fuels. As the leader in the energy sector, Afriquia Gaz is contributing to the country’s ongoing transition to cleaner and more efficient energy sources.

Maghreb Oxygène’s strategic move to strengthen financial position

Meanwhile, Maghreb Oxygène, another key subsidiary of Akwa Group, raised $46.38 million through a private bond issue. This bond issuance is structured similarly to Afriquia Gaz’s, with a single tranche and a bullet repayment after 10 years. The primary objective behind this bond is to reinforce the company’s capital base and reduce the overall cost of debt. Additionally, it will allow Maghreb Oxygène to diversify its financing sources and prepare for the refinancing of an existing bond loan set to mature in the near future.

Maghreb Oxygène, which operates in the industrial gas sector, is a key player in Morocco’s economy, providing essential gases used in various industries, including healthcare, manufacturing, and food processing. The company’s strategic growth initiatives include expanding its product offerings and optimizing operational efficiency, which the new funds will help support.

The role of capital trust finance and Valoris corporate finance

The bond issuances were arranged and placed by a consortium consisting of Capital Trust Finance and Valoris Corporate Finance. These financial experts played a crucial role in structuring the bond deals, which align with Akwa Group’s long-term financial and strategic objectives. The consortium’s involvement ensures that both Afriquia Gaz and Maghreb Oxygène have access to the necessary capital to fuel their growth while maintaining financial flexibility.

The successful completion of these bond placements highlights Akwa Group’s ability to navigate complex financial markets and attract investment to fund its diverse portfolio of projects. The group’s strategic decision to issue bonds underscores its commitment to maintaining a healthy balance sheet while pursuing its growth ambitions in energy, real estate, and other key sectors.

Supporting Morocco’s energy transition and infrastructure development

Beyond the financial benefits, these bond issuances are part of Akwa Group’s broader efforts to support Morocco’s energy transition and the development of modern infrastructure. By investing in renewable energy projects and diversifying its operations, Akwa Group is positioning itself as a key player in Morocco’s sustainability journey.

The group’s investments in alternative energy sources, including LNG and renewable energy, are integral to Morocco’s plans to reduce its carbon footprint and increase energy efficiency. Furthermore, Akwa Group’s real estate, tourism, and automotive services divisions play an essential role in the country’s economic development, with projects aimed at improving living standards and providing critical infrastructure.

A stronger financial future

These bond issuances represent a major step forward for Akwa Group, reinforcing its financial position and ensuring its continued success across multiple sectors. With a forward-looking approach, the group is setting the stage for sustained growth and innovation. Through careful debt management, strategic investments, and a commitment to sustainability, Akwa Group is poised to remain a key contributor to Morocco’s economic development both domestically and internationally.

As the group continues to focus on diversifying its services and investing in renewable energy, Akwa Group’s influence in the global market is expected to expand, further solidifying its position as one of Morocco’s most important and dynamic business groups.