The European Bank for Reconstruction and Development (EBRD) is supporting Morocco’s capital markets by investing MAD 400 million (€36.8 million) in a landmark bond issuance by the Casablanca-Settat region – the first time that a bond has been issued by one of the country’s regional authorities. The MAD 1 billion (€92.0 million) bond, which is being issued domestically in local currency, will help the region to implement strategic investments under its 2022-2027 Regional Development Plan. The Bank’s investment will support the Casablanca-Settat region’s efforts to diversify funding sources by tapping the debt capital market.

This subscription will also serve as a trigger investment allowing the Casablanca-Settat region to join EBRD Green Cities – the Bank’s flagship urban development programme helping cities to address their most pressing climate and environmental challenges. As part of this engagement, the region will develop a Green City Action Plan (GCAP) and a pilot mobility planning initiative aimed at fostering greener, smarter and more inclusive transport solutions.

The Bank’s investment will be complemented by a €2 million technical cooperation package, which will include funding from the Netherlands under the High-Impact Partnership on Climate Action (HIPCA)* for the development of the regional GCAP. The package will also include support for the drafting of a plan to improve the region’s financial and operational performance, which will encompass a digital transformation framework and an enterprise resource planning implementation roadmap.

The EBRD’s Head of Morocco, Haytham Eissa, said: “This inaugural bond issuance by the Casablanca-Settat region represents an important step forward for Morocco’s local capital markets and the diversification of funding sources for its regions. By investing in this transaction and supporting the region’s participation in EBRD Green Cities, we are helping to mobilise sustainable finance for urban development while strengthening investors’ confidence in municipal and regional issuers.”