• €38.4M investment: EBRD commits up to MAD 400M in ONCF’s latest green bond to modernize Morocco’s railway sector.
• Green transition push: Funds will support electrification, energy efficiency, and sustainability-linked financial frameworks.
• Strategic partnership: Builds on EBRD’s first green bond investment in Moroccan infrastructure in 2022.

EBRD backs Morocco’s railway sustainability efforts

The European Bank for Reconstruction and Development (EBRD) is investing up to MAD 400 million (€38.4 million) in Morocco’s railway sector, supporting a MAD 2 billion (€192 million) green bond issued by Office National des Chemins de Fer du Maroc (ONCF).

Why it matters:

The bond will help refinance ONCF’s latest development round, which aims to modernize and electrify Morocco’s railway network, enhance safety measures, and upgrade electric rolling stock.

Related Article: EBRD Issues Record €1 Billion Green Bond to Fund Sustainable Projects

Strategic alignment:

The EBRD is the only international investor in the bond, which complies with Climate Bond Standards and is backed by a Tamwilcom guarantee. A technical cooperation package will also be introduced to facilitate a potential sustainability-linked loan and transition ONCF to International Financial Reporting Standards (IFRS).

What they’re saying:

“The EBRD’s participation in this bond issue demonstrates our continued commitment to the Kingdom of Morocco in terms of ensuring the sustainable growth of its railway network, as well as the development of Moroccan capital markets.” – Sue Barrett, EBRD EMEA Infrastructure Director

“The great success of this second green bond issue is testament to ONCF’s commitment to sustainable development. 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.” – Mohamed Rabie Khlie, ONCF CEO

Bigger picture:

This latest transaction strengthens the EBRD-ONCF partnership that began with Morocco’s first infrastructure sector green bond in 2022. The collaboration will pave the way for further green financial initiatives and support ONCF’s upcoming investment plan.

Morocco & EBRD:

As a founding member of the EBRD since 2012, Morocco has received over €5.2 billion in investments across 110 projects.

Follow ESG News on LinkedIn