Zalar Holding issues MAD 475 million of senior notes to qualified Moroccan investors and the European Bank

  • Date: November 2014
  • Exclusive financial advisor on EBRD private placement: Ascent Capital Partners
  • Exclusive rating advisor on debut credit rating: Ascent Capital Partners
  • Joint financial advisors and joint global coordinators on public offering: Ascent Capital Partners and BMCE Capital Conseil
  • Legal advisor: UGGC

Transaction overview

In November 2014, Zalar Holding issued MAD 350 million of 5-year senior notes to qualified Moroccan investors

  • Offering composed of 4 different tranches:
    A: MAD 30 million, bullet maturity, 200 bps spread (fixed)
    B: MAD 195 million, bullet maturity, 190 bps spread (variable)
    C: MAD 48 million, linear amortization, 180 bps spread (fixed)
    D: MAD 77 million, linear amortization, 170 bps spread (variable)
  • Represents the first bond offering by a rated corporate issuer (outside financial institutions) in Morocco.
  • Ascent Capital Partners acted as joint financial advisor and joint global coordinator on this public offering.

Concurrently with the public bond offering and under the same terms, Zalagh issued MAD 125 million of senior notes to EBRD

  • Represents the first local-currency corporate bond issuance supported by a development financial institution (DFI) in Morocco.
  • Ascent Capital Partners acted as exclusive financial advisor to Zalagh Holding on this private placement transaction.

Prior to the two aforementioned transactions, Zalar was assigned in October 2014 a national long-term rating of ‘B+(mar)’, with Outlook Stable, by Fitch Ratings

  • Represents the first credit rating assigned to a corporate issuer (outside financial institutions) in Morocco.
  • Ascent Capital Partners acted as exclusive rating advisor to Zalar Holding on this debut credit rating.

Company overview

Zalar Holding is a leading integrated player in the Moroccan poultry industry, present across the entire poultry value chain.

The group is organized across five key business segments: import of agricultural raw materials, animal feed, hatchery, breeding, poultry slaughtering, and production of finished poultry meat products.

Zalar Holding employs more than 1,700 people across 15 operating subsidiaries.