EBRD Invests MAD 400 Million in ONCF’s Green Bond to Support Sustainable Rail Development
Rabat, The Gulf Observer: The European Bank for Reconstruction and Development (EBRD) has announced an investment of up to MAD 400 million (€38.4 million) in a green bond issued by Morocco’s national railway operator, ONCF.
Valued at MAD 2 billion (€192 million), the bond aims to refinance ONCF’s recent sustainability-driven development projects. This marks ONCF’s second green bond issuance, following its inaugural offering in 2022, which was also backed by the EBRD.
Sue Barrett, EBRD Director for Europe, Middle East, and Africa (EMEA) Infrastructure, emphasized the bank’s ongoing commitment to Morocco’s sustainable transport infrastructure.
“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, as well as the development of Moroccan capital markets,” she stated.
Barrett further highlighted the bank’s collaboration with ONCF in developing additional green financial products while strengthening governance initiatives. The proceeds from the bond will be allocated to modernizing ONCF’s rail network, including electrification projects, the acquisition of new electric trains, and the implementation of enhanced safety and transport planning measures.
The bond adheres to the Climate Bond Standards and has received certification from the Climate Bonds Standard Board. It also benefits from a guarantee provided by Tamwil.com, Morocco’s state-backed financing institution.
ONCF’s Commitment to Sustainable Mobility
ONCF Chief Executive Officer Mohamed Rabie Khlie hailed the project as a major milestone, reinforcing the railway operator’s commitment to sustainability.
“The success of this second green bond issue confirms ONCF’s dedication to sustainable development. Railways play a key role in reducing carbon emissions from mobility, and this bond strengthens our efforts to promote an efficient and environmentally responsible mode of transport,” Khlie stated.
The EBRD remains the sole foreign investor in the bond, with plans to support ONCF in integrating advanced green technologies and preparing for future engagements with green financial instruments. This initiative will also facilitate ONCF’s adoption of International Financial Reporting Standards (IFRS), paving the way for a potential sustainability-linked loan.
The agreement builds on the cooperation between EBRD and ONCF, which began in 2022 with Morocco’s first infrastructure-sector green bond. Moving forward, the two institutions aim to explore further projects in the green finance sector.
Since commencing operations in Morocco in 2012, EBRD has invested over €5.2 billion in 110 projects, solidifying the country’s position as a key investment destination for the bank.
