The International Finance Corp. (IFC), a member of the World Bank Group, and Proparco, a subsidiary of Agence Française de Développement (AFD), are investing €100 million and €35 million, respectively, in the first green bond issuance by Banque Centrale Populaire (BCP) in Morocco. The green bond issuance is aimed at promoting sustainable, environmentally friendly projects in the country.
This is the first green bond issuance in foreign currency in Morocco, as well as IFC and Proparco’s first green bond investment in the region. The 10-year maturity bond will be used to provide long-term funding for BCP, one of Morocco’s largest banking groups, to refinance investments in selected renewable energy projects in the Kingdom.
A key objective is to help create a sustainable financing mechanism for banks to support long-term investments in green assets, by channeling private institutional money to climate finance through capital markets.
“This strategic operation cements our position as a pioneer in the financing of renewable energy projects," said Abdeslam Bennani, Deputy CEO in charge of Corporate and Investment Banking at BCP. “It also recognizes the confidence and trust placed in the BCP Group by the largest international financial institutions.”
IFC’s green bond program helps funnel private investment into low-carbon projects. As of June 2017, IFC had issued $5.8 billion in green bonds in 12 currencies.