International financial institution the European Bank for Reconstruction and Development (EBRD) is investing €38.4 million into a green bond issued by Moroccan railway operator Office National des Chemins de Fer du Maroc (ONCF). The green bond – worth €192 million – supports the modernization and electrification of the country’s railway network.
With the capital, ONCF will partially finance the debt from its latest development round, which sought to improve energy efficiency and reduce greenhouse gas emissions across Morocco’s rail system. A technical cooperation package will also be distributed, aimed at supporting ONCF’s transition to adopting the International Financial Reporting Standards.
“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,” stated Sue Barrett, Director for Infrastructure: Europe, Middle East and Africa, EBRD.
With the finance, ONCF will acquire and upgrade electric trains, address safety units and substations while developing and integrating transport-planning systems in Morocco. State-owned Tamwilcom is providing a guarantee for the bond.
“Railways are an essential tool for reducing our mobility-related carbon footprint and championing a mode of transport that both delivers and its kind to the environment,” added Mohamed Rabie Khlie, CEO, ONCF.
