Taqa Morocco: Bondholders Approve the Transfer of a Debt of 2.7 Billion Dirhams
On October 26, 2026, the General Assembly of bondholders of Taqa Morocco approved the transfer of a total bond loan amounting to 2.7 billion Moroccan dirhams to JLEC 1-4. This operation, executed through a novation with a change of debtor, allows the latter entity to replace Taqa Morocco as the sole debtor of the bond issued in September 2020.
A Debt Transfer of 2.7 Billion Dirhams
The bond in question, valued at 2.7 billion dirhams, was issued on September 3, 2020, as part of a private placement. The transfer was approved by the bondholders in accordance with Articles 347 and following of the Dahir forming the Code of Obligations and Contracts (DOC).
Novation through a change of debtor involves replacing the original debtor with a new one. Under this operation, JLEC 1-4 will thus take over as the sole debtor for the entire bond loan in question.
Taqa Morocco Commits to Retain Control of JLEC 1-4
Following discussions between the parties, the bondholders requested the inclusion of various commitments aimed at guiding the implementation of this novation.
Taqa Morocco has particularly committed to maintaining control of JLEC 1-4 for the entire duration of the bond loan. The notion of control referenced in this commitment aligns with the definition provided in Article 144 of Law No. 17-95 concerning public limited companies.
On its part, JLEC 1-4 has pledged to uphold the financial commitments outlined in the financing documents concluded with lending institutions in connection with the long-term debt novation. These commitments specifically relate to the leverage ratio and the net financial debt ratio, also known as gearing.
An Operation Governed by Financial Commitments
The approval by the General Assembly of bondholders validates the principle of transferring the bond loan to JLEC 1-4 while ensuring commitments regarding the control of this entity and compliance with the financial ratios agreed upon with lending institutions.
This decision marks a step in the reorganization of the concerned debt. The modalities of the operation are framed within the legal context of novation as stipulated by the DOC and are based on the commitments explicitly accepted by the parties.
