The municipality of Agadir in south-west Morocco has issued European Bank for Reconstruction and Development (EBRD) a green bond valued US $36M as part of its “Green Cities” financing programme.
This is the first Moroccan municipality to issue a green bond following a subscription by the EBRD. The transaction will be used to finance the Urban Development Programme (UDP) implemented by the municipality of Agadir with the support of the Souss-Massa region.
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Urban Development Programme
The initiative is set to see a number of developments taking pace including; improvement of living conditions of around 422,000 inhabitants. Solar street lights will be set up on Mohammed V Avenue and Bensergao (the entrance to the city), construction of a hydraulic structure in Oued Lghazoua and the opening of the Ibn Zaidoun urban park, as well as the development of green spaces in the localities of Anza and Tikiouine. The program which was launched in 2020 experienced delays in implantation due to a lack of funding, resulting to the issue of the bond to national and international investors.
“The investment will be accompanied by a technical cooperation component, financed by the High Impact Partnership on Climate Action (HIPCA). Agadir will then undertake to identify the priority environmental challenges it faces and the measures (investments and public policies) to be adopted to meet them,” the EBRD said.
Earlier in July 2022, a green bond worth US $95M issued by Morocco’s Office National des Chemins de Fer (ONCF) was subscribed by the EBRD for US $19M. The proceeds of this operation will be used to finance the debt contracted by ONCF for the construction of Morocco’s first high-speed line with a maximum speed of 320 km/h. The train, called Al Boraq, will link Tangier and Casablanca, with stations in Larache, Kenitra and Rabat.
