EBRD backs first municipal bond in Morocco
The European Bank for Reconstruction and Development (EBRD) is supporting Agadir, capital city of Morocco’s Souss-Massa region, in its plans to diversify funding sources by tapping the debt-capital market, with an investment of MAD 400 million in a local-currency bond of MAD 1 billion issued by the City of Agadir.
The Bank’s investment will help Agadir free up additional resources to implement its ongoing Urban Development Program, focusing on green and inclusive infrastructure projects.
This subscription will serve as a trigger investment under the EBRD Green Cities programme, formally initiating Agadir’s participation in the programme and making the city the first in Morocco to join the scheme. Under EBRD Green Cities, Agadir will commit to developing a Green City Action Plan (GCAP), which will identify its key environmental challenges and the measures – investments and policy actions – required to address them.
A technical cooperation package will complement the Bank’s investment. This package will include funding from the High-Impact Partnership on Climate Action (HIPCA) for the development of a GCAP for Agadir that includes gender and inclusion assessment. The package will also include support from the EBRD Shareholder Special Fund for the development of a plan to improve financial and operational performance.
Morocco is a founding member of the EBRD and became a country of operations in 2012. To date, the EBRD has invested more than €3.8 billion in the country through 90 projects.