EBRD invests MAD 400 m in local green bond issued by Morocco’s ONCF

17 / 02 / 2025

By Marwa Nassar - -

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

Issuing the bond will partially refinance the debt from ONCF’s latest development round designed to: modernize and electrify the network; acquire and upgrade 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 will be aligned with the Land Transport Criteria of the Climate Bond Standards, verified by second-party opinion, and certified by the Climate Bonds Standard Board. The bond will also include a guarantee from Tamwilcom, the state guarantee and business financing provider.

The projects being refinanced will support ONCF’s transition to electric, improve energy efficiency and lower greenhouse gas emissions, as well as promoting the broader shift to a more environmentally friendly form of transport.

A technical cooperation package will be rolled out together with the Bank’s investment. It will contribute to setting up the framework for a potential sustainability-linked loan, and so facilitate ONCF’s future participation in green financial products. The package will also support ONCF’s transition to adopting the International Financial Reporting Standards (IFRS).

Sue Barrett, Director of the EBRD’s Europe, Middle East and Africa (EMEA) Infrastructure team, said: “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. We also aim to work with ONCF to develop further green financial products while enhancing governance initiatives.”

Mohamed Rabie Khlie, ONCF’s Chief Executive Officer, said “The great success of this second green bond issue is testament to ONCF’s commitment to sustainable development. As we head into a new development round, let’s remember that 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.”