Green bond issuance

The International Finance Corporation (IFC) and Proparco are investing $111 million and $39 million, respectively, in the first green bond issuance by Banque Centrale Populaire (BCP), to promote renewable energy projects in Morocco.

A press release highlighted that this move marks the first green bond issuance in foreign currency in the North African country, also the first green bond investment in the region by the financiers.

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 country.

Green bond issuance

A key objective is to help create a sustainable financing mechanism for banks to support long-term investments in green assets, by channelling private institutional money to climate finance through capital markets, the IFC noted.

The deputy CEO in charge of corporate and investment banking at BCP, Abdeslam Bennani, commented: “This strategic operation cements our position as a pioneer in the financing of renewable energy projects.”

“It also recognises the confidence and trust placed in the BCP Group by the largest international financial institutions,” Bennani added.

The IFC highlighted that its investment is part of its strategy to create markets by unlocking investment for private sector projects, and meet the increasing demand for renewable energy and energy-efficient projects. Read more…

Investing in renewable energy projects

IFC director for the Middle East and North Africa, Mouayed Makhlouf, said: “Addressing climate change is a priority for IFC in the region and Morocco is an active player in this area. By building on our long-term partnership with BCP, we aim to encourage more private sector investment in long-term renewable energy projects, paving the way for more sustainable economic development and growth.”

The financing is expected to help save 938,000 tonnes on average of CO2 emissions equivalent per year, as well as the equivalent of 17.36 million tonnes of CO2 in greenhouse gas savings over the remaining lifetimes of the projects being financed.

“This historic investment is in line with commitments made by Morocco during COP22 in Marrakech, last year,” Proparco Regional Representative in North Africa, Yazid Safir, said.

IFC is a member of the World Bank Group and Proparco is a subsidiary of Agence Française de Développement.

 

Featured image: Shutterstock