Sofac Raises Its Bond Issuance Ceiling to 9 Billion Dirhams to Enhance Financing Capacity
Sofac, a car financing and consumer finance company affiliated with CIH Bank, has announced a significant update to its bond issuance program after receiving approval from the Moroccan Capital Market Authority (AMMC). The confirmed ceiling has been raised to 9 billion dirhams from the previous 7 billion dirhams.
This strategic decision aims to enhance Sofac’s financing capability, allowing it to keep pace with its growth and support the expansion of the consumer credit and car financing market in Morocco.
Details of the Issuance Program
The nominal value of each bond issued under this program is 100,000 dirhams, with maturities ranging between two and seven years, providing flexibility that suits various categories of investors. Interest rates may be fixed or variable, depending on market conditions at the time of issuance.
This update also includes the registration of the reference document for 2024 and an updated information memorandum outlining the conditions for issuing bonds dedicated to financing the company’s activities.
Context and Future Prospects
This initiative is part of a robust growth dynamic witnessed by Sofac, which recorded a consolidated net banking income of 520 million dirhams during the first half of 2025, reflecting an increase of 35% compared to the same period last year. This performance is attributed to effective margin management and rising demand in the car financing and consumer sectors.
The increase in the bond issuance ceiling reflects Sofac’s desire to diversify its funding sources and strengthen its position in the consumer credit market in Morocco.
