Taqa Morocco: Bondholders Approve the Transfer of a Debt of 2.7 Billion Dirhams

Taqa Morocco Bondholders’ General Assembly Approves 2.7 Billion Dirham Debt Transfer

On October 26, 2026, Taqa Morocco’s General Assembly of Bondholders approved the transfer of a 2.7 billion dirham bond issue to JLEC 1-4. This operation, executed through a novation with a change of debtor, allows the new entity to replace Taqa Morocco as the sole debtor for the bond issued in September 2020.

A Debt Transfer of 2.7 Billion Dirhams

The bond in question, amounting to 2.7 billion dirhams, was issued on September 3, 2020, as part of a private placement. The transfer received the green light from bondholders in accordance with Articles 347 and subsequent articles of the Dahir forming the Code of Obligations and Contracts (DOC).

Novation through change of debtor typically involves substituting a new debtor for the original one. In this case, JLEC 1-4 will assume the status of the sole debtor for the entirety of the bond.

Taqa Morocco Commits to Maintaining Control Over JLEC 1-4

Following discussions among the parties, bondholders requested the incorporation of several commitments aimed at overseeing the execution of this novation.

Taqa Morocco has specifically committed to maintaining control of JLEC 1-4 for the entire duration of the bond. The definition of control referenced in this commitment aligns with the framework set out in Article 144 of Law No. 17-95 concerning joint-stock companies.

For its part, JLEC 1-4 has pledged to uphold the financial commitments outlined in the financing documents established with lending institutions during the long-term debt novation. These commitments mainly pertain to the leverage ratio and the net financial debt ratio, also known as gearing.

An Operation Governed by Financial Commitments

The approval from the General Assembly of Bondholders validates the principle of transferring the bond issue to JLEC 1-4 while establishing commitments regarding the oversight of this entity and adherence to the financial ratios agreed upon with lenders.

This decision marks a significant step in the reorganization of the related debt. The modalities of the operation fall within the legal framework of novation as outlined by the DOC and are predicated on commitments explicitly accepted by the parties involved.