EBRD Makes Bold Investment in Green Railway Infrastructure in Morocco
The European Bank for Reconstruction and Development (EBRD) has reinforced its commitment to sustainable mobility in Morocco with a substantial investment in the country’s railway network.
The bank is investing up to MAD 400 million (€38.4 million) in a MAD 2 billion (€192 million) green bond issued by the Office National des Chemins de Fer du Maroc (ONCF). This move marks a significant step towards modernising Morocco’s rail sector while aligning with global sustainability goals.
Accelerating Morocco’s Rail Electrification and Modernisation
With this investment, ONCF will partially refinance its existing debt, incurred through recent infrastructure upgrades aimed at:
- Expanding and electrifying the railway network
- Upgrading and acquiring electric rolling stock
- Enhancing safety measures and substation efficiency
- Developing and integrating intelligent transport planning systems
The capital injection will not only accelerate the country’s green transition but also contribute to energy efficiency improvements and a reduction in greenhouse gas emissions.
By shifting to an environmentally friendly transport system, Morocco is positioning itself as a leader in sustainable mobility across Africa.
A Landmark Green Bond Initiative
This marks ONCF’s second green bond issuance, following its pioneering move in 2022, when the EBRD backed Morocco’s first-ever infrastructure-focused green bond. Notably, the EBRD remains the only international investor in this round, further solidifying its confidence in Morocco’s railway ambitions.
The bond aligns with the Land Transport Criteria of the Climate Bond Standards, ensuring transparency and sustainability. Verified by a second-party opinion and certified by the Climate Bonds Standard Board, the bond also benefits from a guarantee provided by Tamwilcom, Morocco’s state-backed guarantee and business financing agency.
Driving Financial and Governance Transformation
Beyond the direct financial backing, EBRD is also rolling out a technical cooperation package designed to support ONCF in:
- Establishing a framework for future sustainability-linked loans
- Expanding its access to green financial products
- Transitioning towards the International Financial Reporting Standards (IFRS), enhancing financial governance and transparency
This holistic approach ensures that Morocco’s railway sector isn’t just greener but also more financially resilient and globally competitive.
Sue Barrett, Director of the EBRD’s Europe, Middle East, and Africa (EMEA) Infrastructure Team, underscored the importance of the investment, stating: “The EBRD’s participation in this bond issue demonstrates our continued commitment to the Kingdom of Morocco in 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.”
Similarly, Mohamed Rabie Khlie, Chief Executive Officer of ONCF, hailed the bond’s success, commenting: “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.”
Strengthening a Long-Term Partnership
The collaboration between ONCF and the EBRD dates back to 2022 when the bank supported Morocco’s first green bond for infrastructure. This second investment underscores the growing momentum towards integrating sustainable financing within the country’s mobility sector. With this latest initiative, ONCF is setting the stage for further green investments that will support its long-term development plan.
Morocco’s Expanding Green Investment Footprint
A founding member of the EBRD, Morocco became an investee economy in 2012.
To date, the bank has invested more than €5.2 billion into 110 projects across various sectors, reinforcing the country’s commitment to sustainable infrastructure, energy efficiency, and economic resilience.
A Future Fuelled by Sustainable Mobility
As Morocco continues to push forward with its ambitious railway modernisation agenda, EBRD’s investment in ONCF’s green bond is more than just financial backing—it’s a vote of confidence in the country’s ability to lead Africa’s green transport revolution.
With sustainability now at the heart of its transport strategy, Morocco’s railway sector is poised to become a benchmark for future green mobility projects across the continent.
