The European Bank for Reconstruction and Development (EBRD) has committed up to MAD 400 million (EUR 38.4 million) in Green Bonds issued by Morocco’s railway office (ONCF), according to a statement by the bank on Tuesday.
The investment would support Morocco’s push toward sustainable transport. ONCF launched the MAD 2 billion (EUR 192 million) green bond to partially refinance debt from its latest development projects. The initiatives focus on modernizing and electrifying the railway network, improving safety measures, and integrating advanced transport planning systems.
The EBRD is the only international investor in the bond. A second-party opinion verified the bond’s compliance and the Climate Bonds Standard Board certified it. In addition, Tamwilcom, Morocco’s state-backed business financial provider, is offering a guarantee to further strengthen the bond’s credibility.
The funds will play a key role in ONCF’s green transition by increasing energy efficiency, cutting greenhouse gas emissions, and promoting rail as an environmentally friendly transport option.
Sue Barrett, Director of the EBRD’s Europe, Middle East, and Africa (EMEA) Infrastructure team, highlighted the significance of the investment. “The EBRD’s participation in this bond issue demonstrates our continued commitment to the Kingdom of Morocco in ensuring the sustainable growth of its railway network and the development of Moroccan capital markets.”
ONCF is working to further develop green financial products “while enhancing governance initiatives,” Barrett added.
Meanwhile, ONCF’s CEO Mohamed Rabie Khlie highlighted the railway operator’s dedication to sustainability. “The great success of this second green bond issue is a testament to ONCF’s commitment to sustainable development.”
As ONCF enters the new development round, Khlie said: “Let’s remember that railways are an essential tool for reducing our mobility-related carbon footprint and championing a mode of transport that both delivers and is kind to the environment.”
EBRD previously invested in ONCF’s Green Bonds issued in 2022. That initial investment was the first of its kind in Morocco’s infrastructure sector, focused on mobility in Africa.
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