The European Bank for Reconstruction and Development has invested MAD 400 million, about $43 million, in the first bond ever issued by a Moroccan region.
The MAD 1 billion bond was launched by the Casablanca-Settat Regional Council to help pay for its 2022 to 2027 development plan. The move signals a shift in how regions in Morocco pay for big projects, with local authorities starting to raise money from investors instead of relying mostly on the central government.
The money will go towards large infrastructure upgrades and projects focused on sustainability across the country’s main economic hub. The investment also allows Casablanca-Settat to join the EBRD Green Cities programme, which means the region must now prepare a Green City Action Plan focused on cleaner transport and better protection against climate risks. The Netherlands is supporting the work with €2 million in technical assistance through the High-Impact Partnership on Climate Action.
Casablanca-Settat is Morocco’s economic powerhouse. The region produces more than 31 percent of the country’s GDP, hosts its biggest industrial zones and handles much of Morocco’s foreign trade through the ports of Casablanca and Jorf Lasfar. It is also the most populated region, so its development has a direct impact on jobs and living standards nationwide.
The regional development plan backed by the bond focuses on easing traffic in Casablanca by expanding tram and bus rapid transit systems. It also includes projects to tackle drought through desalination and wastewater treatment, as well as plans to modernise public administration using digital systems to improve transparency and financial management.
The bond is part of Morocco’s broader policy of decentralisation, which aims to give regions more control over their own budgets and priorities. It is only the second municipal-style bond issued in the country, and analysts believe it could encourage other regions such as Rabat-Salé-Kénitra and Tangier-Tetouan-Al Hoceima to try the bond market as well.
The deal comes as Morocco seeks to position itself as a leader in climate finance ahead of COP30, using a mix of investment, loans and international grants to fund climate projects.
