Subordinated debt: The Mohammed VI Fund launches CapAccess
If you have a viable investment project but lack the necessary equity capital, the Mohammed VI Fund for Investment (FM6I) has the solution: CapAccess. This is a subordinated debt product launched by FM6I. The aim is to finance investment projects in conjunction with a bank loan. T
he product is dedicated exclusively to Moroccan companies with sales of between 10 million and 500 million dirhams (USD 10 to 50 million), operating in eligible business sectors. Outside the standard target range, waivers may be granted in special cases, which will be submitted to an ad hoc committee. In this way, FM6I provides additionality to the financial market, supporting and complementing a conventional banking offering. «It is a product that acts as a facilitator, accelerator, and springboard for Moroccan businesses. It is in line with the Fund’s overall logic of limiting its commitments to one third of the investment amount», declared Mohamed Benchaaboun, Managing Director of FM6I, at the signing ceremony between the Fund and the banks held on Tuesday March 5 in Casablanca. « The product will be released jointly with senior debt covering two-thirds of the loan and one-third of subordinated debt. The risk is shared by the bank and FM6I in favor of the company « , explains Benchaaboun. CapAccess offers a number of advantages, not least being its non-dilutive nature for companies not wishing to open up their capital or not yet ready to do so. Thanks to a partnership with the banking sector, CapAccess can be set up flexibly. The banker is the sole point of contact for the company wishing to benefit from the product, reducing the time needed to set up and finance projects. Tamwilcom is mandated to act in the name and on behalf of FM6I for the subordinated loans to companies. The FM6I plans to allocate 4 billion dirhams (USD 400 million) to CapAccess, with the aim of contributing to the financing of a total of 15 billion dirhams (USD 1.5 billion) in favor of SMEs and mid-sized companies in particular. The fund aims to build a financing continuum for Moroccan companies. Support is also at the heart of its action. It plans to launch a program dedicated to companies, to both facilitate their access to bank credit and prepare them for the opening up of their capital, notably through IPOs.
Khadija MASMOUDI
