The European Bank for Reconstruction and Development (EBRD) has invested up to 400 million Moroccan dirhams ($39.66 million) in Morocco’s railway sector through a MAD 2 billion green bond issued by the Office National des Chemins de Fer du Maroc (ONCF), the country’s rail operator.

The bond will partially refinance the debt from ONCF’s latest development round designed to modernise and electrify the network, acquire and upgrade the electric rolling stock, address safety units and substations, and develop and integrate transport planning systems.

The EBRD is the only international investor in the bond, which has a guarantee from Tamwilcom, the state guarantee and business financing provider.

A technical cooperation package will be rolled out with the EBRD’s investment, which will aid in setting up the framework for potential sustainability-linked loans and facilitate ONCF’s future green financial products.  

The bank also invested in Morocco’s first infrastructure sector green bond issued in 2022.  EBRD has invested more than €5.2 billion into 110 projects across Morocco, which is a founding member.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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