📋 Tender Overview
Location:
Morocco
Project number:
56059
Business sector:
Transport
Notice type:
State
Environmental category:
B
Approval date:
29 Jan 2025
Status:
Signed
English-language PSD published:
11 Feb 2025
Project Description
Provision of an investment of up to MAD 400mn (EUR 38.4mn) to the Office National des Chemins de Fer ("ONCF"), Morocco's national integrated railway company. The investment will entail the Bank's subscription to a local currency senior secured Green Bond issued by ONCF for up to MAD 2 billion (c. EUR 192mn) through a public placement. The Bond will be aligned with the Land Transport Criteria of the Climate Bonds Standard as verified by a Second Party Opinion ("SPO") and certified by the Climate Bonds Standard Board.
Project Objectives
The Bond proceeds will be used to refinance a portion of ONCF's local outstanding commercial debt related to a series of prior investments targeting low carbon sustainable connectivity. The Bank's participation in Tranche A will be used to refinance debt linked to two projects under ONCF's investment programme: (i) the capacity increase through the construction of additional passenger and freight rail lines between the cities of Casablanca and Kenitra, and (ii) the acquisition and upgrade of electrified rolling stock. The investment will result in overall capital market development through supporting the second Green Bond in the sustainable infrastructure sector in Morocco.
Transition Impact
ETI score: 74
The expected transition impact of the Project derives from the Resilient and Green qualities:
Resilient: The proposed investment contributes to the overall capital market development and will have an important demonstration effect as it will incentivise issuers to broaden the type of capital market products that they deploy.
Green: The proceeds of the Bond will refinance debt used for a series of prior investments targeting low-carbon sustainable connectivity.
Client Information
NATIONAL RAILWAY OFFICE
ONCF, Morocco's national railway integrated company, is a fully state-owned entity organised as a public establishment with industrial and commercial nature, active in three transport market segments: (i) phosphate rock transport carried out for the State-owned OCP Group, (ii) general freight transport and (iii) intercity passenger transport. ONCF is responsible for building and maintaining the rail infrastructure and operating train services.
EBRD Finance Summary
MAD 400,000,000.00
Total Project Cost
MAD 2,000,000,000.00
Additionality
The Bank's additionality is mainly derived from: (i) providing funding which better matches asset life with the funding structure; (ii) closing a funding gap and supporting a successful book-building process; (iii) triggering enhanced practices at the level of the bond market through Green Bond; and (iv) supporting ONCF in pursuing institutional reforms through the development of an SLL framework and strength
