The International Finance Corporation (IFC) has signed an agreement with the Moroccan Capital Market Authority (AMMC) that will help companies enhance their reporting on environmental, social and governance (ESG) practices, paving the way for more green investments—a key component in Morocco’s COVID-19 recovery strategy.
AMMC, a long-term partner of the IFC, ensures the protection of investors and the proper functioning and transparency of capital markets in Morocco. ESG reporting was introduced by AMMC Circular No. 03/19 on financial operations and information, with the aim of better informing the market about the performance and extra-financial risks of issuers.
As part of the partnership, IFC will support AMMC’s efforts to improve capital market ESG standards by building its capacity and aligning its ESG disclosure regulatory framework with international best practices.
With IFC’s support AMMC developed and issued green bond guidelines for issuers and investors in 2016, and later extended the guidelines to cover social and sustainability bonds. In 2017, IFC invested €100 million ($120 million) in a €135 million ($162 million) 10-year green bond, the first to be issued in a foreign currency in Morocco.
“Aligning the Moroccan financial sector to sustainable development was identified as a priority at COP22. This is more important than ever in the current context of economic recovery and requires the adoption of best practices on transparency of environmental, social and governance factors,” said Nezha Hayat, President of AMMC.
Hayat added: “Our partnership with IFC will allow us to better support companies making public offerings in their transition to more sustainable practices, helping them improve their competitiveness and more broadly the attractiveness of our market.”
Sérgio Pimenta, IFC Vice President for Africa and the Middle East: “A green recovery can help deliver economic growth and jobs quickly. Our partnership with AMMC will enable Moroccan businesses to enhance their environmental, social and governance practices and attract more green investment, in line with Morocco’s green recovery plan, creating more jobs and opportunities.”
The project is part of IFC’s Governance for Sustainability programme in Morocco and is delivered as part of the MENA Private Sector Development initiative, in partnership with the government of the Netherlands.