Morocco’s National Railway Office (ONCF) has successfully completed its second green bond issuance, raising 2 billion dirhams. This bond, guaranteed by the National Guarantee and Enterprise Financing Company (SNGFE), was launched via a public offering. The move reinforces ONCF’s commitment to sustainable development, with the aim of reducing the carbon footprint of its railway infrastructure.
The issuance was structured into four separate tranches, tailored to different investor profiles based on maturity periods and interest rates. Tranche A, with a 15-year maturity and a variable interest rate, achieved full subscription at a rate of 2.95%. In contrast, tranches B and C, despite high demand, did not receive any allocation of titles. Tranche D, which offers a 30-year maturity and a fixed interest rate of 4.47%, saw partial allocation of investor requests.
The operation was met with overwhelming success, recording a subscription rate more than five times the initial offering. Total investor commitments surpassed 10 billion dirhams, a testament to the strong interest from Moroccan institutional investors. Key participants included retirement and pension funds, which secured 576.9 million dirhams, the Caisse de Dépôt et de Gestion (CDG) with 498.9 million dirhams, as well as collective investment funds (OPCVM) and financial companies with 479.9 million and 400 million dirhams, respectively. The European Bank for Reconstruction and Development (EBRD), a significant international stakeholder, also joined the issuance, underscoring the ONCF’s growing appeal on the global green finance market.
The capital raised will be used to modernize Morocco’s railway infrastructure and further advance efforts to reduce greenhouse gas emissions. ONCF expressed its gratitude to all investors and partners involved in the transaction, highlighting the pivotal role of CDG Capital in coordinating and placing the bond issuance.
