The European Bank for Reconstruction and Development (EBRD) has announced a MAD 400 million (€38.4 million) investment in a green bond issued by Morocco's national railway operator, ONCF. The investment is part of a larger MAD 2 billion (€192 million) green bond issuance aimed at refinancing ONCF's latest development projects. The bond issuance, completed on February 7, 2025, saw remarkable success with a 5.25 times oversubscription, attracting total demand of 10.49 billion dirhams. According to EBRD's official statement, the bank stands as the sole international investor in this bond, which will be aligned with the Land Transport Criteria of the Climate Bond Standards. The bond issuance comprises four tranches with maturities ranging from 15 to 30 years, offering both fixed and adjustable rates. The bond includes a guarantee from Tamwilcom, Morocco's state guarantee provider, and will be certified by the Climate Bonds Standard Board. The refinancing package will support several key initiatives, including network modernization and electrification, electric rolling stock upgrades, safety unit improvements, and transport planning system development. Additionally, a technical cooperation package will be implemented to establish a framework for future sustainability-linked loans and support ONCF's transition to International Financial Reporting Standards. ONCF CEO Mohamed Rabie Khlie emphasized that this second green bond issue demonstrates the company's dedication to sustainable development. This investment follows the successful 2022 partnership between EBRD and ONCF, which marked Morocco's first infrastructure sector green bond. Since becoming an investee economy in 2012, Morocco has received more than €5.2 billion in EBRD investments across 110 projects.
