A Historic Fundraising Initiative for the Casablanca-Settat Region

The Casablanca-Settat region has achieved a groundbreaking milestone in the history of public finances in Morocco by raising 1 billion dirhams through a bond issuance on the capital markets. This makes it the first region in the Kingdom to utilize this method of financing, which has previously been predominantly reserved for the State and large corporations. This initiative represents a significant step towards increasing the financial autonomy of local governments.

Competitive Financing Compared to Traditional Channels

The bond issuance has distinguished itself with particularly favorable conditions, featuring an interest rate close to 3.9%, considerably lower than the rates offered by traditional financing sources like the Municipal Equipment Fund (FEC), where rates can exceed 6%. This advantageous positioning allows the region to significantly lower its debt costs while accessing resources better suited for funding its strategic projects.

Strategic Support from the EBRD

The operation received substantial support from the European Bank for Reconstruction and Development (EBRD), which subscribed to 40% of the loan, amounting to nearly 400 million dirhams. In addition to this investment, the EBRD offers technical assistance aimed at strengthening governance and management capacities within the region. This involvement bolsters the credibility of the operation among investors and positions Casablanca-Settat within the framework of sustainable finance and structured territorial development.

Solid Financial Fundamentals

The success of this fundraising effort relies on rigorous financial management. The region has initiated a process to control its indebtedness while maintaining a robust investment level, having already mobilized several billion dirhams for strategic projects. This reassurance to financial markets confirms the region’s capability to fulfil its commitments in the medium to long term.

Investments with High Economic Impact

The funds raised will be directed towards strategic projects with significant economic and social impact. Among the priorities are the development of transport infrastructure, improving access to water, waste management, enhancing industrial attractiveness, and digital transformation. These investments aim to solidify Casablanca-Settat’s role as Morocco’s economic engine.

A Model for Other Moroccan Regions

Beyond its immediate impact, this operation paves the way for a transformation in regional financing in Morocco. It serves as a replicable model for other local governments, provided they maintain strong governance and balanced financial fundamentals. Accessing the bond market could thus become a strategic lever to support regional development and enhance decentralization efforts.