In a significant step towards sustainable financing, Morocco’s National Railway Office (ONCF) successfully raised 2 billion dirhams through its first-ever green bond issuance. Investor interest was overwhelming, with total demand exceeding 10 billion dirhams—over five times the targeted amount. This achievement cements ONCF’s role as a major player in green infrastructure development.
Moroccan institutional investors showed strong enthusiasm for the initiative. Adding international weight to the operation, the European Bank for Reconstruction and Development (EBRD) joined the effort, a move that underscores the project’s credibility and alignment with global sustainability goals. The EBRD’s involvement highlights a growing trend among financial institutions to support eco-friendly projects in emerging markets.
The bond issuance was strategically designed with multiple tranches, offering maturities ranging from 13 to 15 years. This approach allows ONCF to secure long-term funding essential for its ambitious green projects. The proceeds will finance several eco-driven initiatives, including upgrades to Morocco’s rail infrastructure to enhance energy efficiency and reduce carbon emissions.
By opting for a structured, long-term funding plan, ONCF is positioning itself to lead large-scale environmental efforts without the pressure of short-term repayment cycles.
This successful issuance strengthens ONCF’s leadership in Morocco’s energy transition. It highlights the growing appetite for environmental investments, reflecting a shift in how global and local markets evaluate infrastructure projects. The green funding will drive essential projects, such as the electrification of rail lines, improved energy efficiency, and reduced greenhouse gas emissions.
To ensure the success of the operation, ONCF enlisted CDG Capital, which acted as both financial advisor and placement agent. Their role was pivotal in coordinating the transaction and navigating investor demand.
With this bold move, ONCF is not only modernizing Morocco’s rail network but also setting a benchmark for sustainable financing in the region.
