Casablanca-Settat Launches a New Phase in Sustainable Territorial Funding
Casablanca-Settat Takes a Major Step in Economic and Financial Development
The Casablanca-Settat region is making significant strides in its economic and financial development by becoming the first Moroccan region to tap into the bond market to finance its key projects.
This initiative is supported by the European Bank for Reconstruction and Development (EBRD), which has officially announced an investment of 400 million dirhams aimed at modernizing regional infrastructure and promoting an innovative and sustainable territorial financing model.
A Historic Regional Bond Issuance in Morocco
The operation entails the EBRD subscribing to an unsecured senior bond denominated in local currency as part of a private placement that could reach up to one billion dirhams.
This issuance marks a historic first for a Moroccan local authority and represents a significant step toward diversifying the funding modes available to regions.
According to project officials, this approach aims to enhance the budgetary autonomy of local authorities and accelerate the execution of major development projects.
EBRD Aims to Structure a Territorial Bond Market
By positioning itself as a key investor, the EBRD seeks to contribute to the creation of a robust bond market dedicated to local authorities in Morocco.
The goal is to enable regions to mobilize alternative financing to support their investments while reducing reliance on traditional public funding mechanisms.
International Support for Governance and Inclusion
The project also benefits from additional financial support from the Netherlands, through a two million euro grant allocated under the HIPCA program dedicated to climate action.
This funding will help finance technical assistance focused on improving regional governance, project performance, and dimensions related to gender and social inclusion.
Measures are also in place to bolster the financial and operational performance of the region.
Focused on Ecological Transition
Classified as category B in terms of environmental and social governance, the project meets the Paris Agreement requirements related to climate change mitigation and environmental adaptation.
The implementation of various projects will be overseen by the Regional Project Execution Agency, which will coordinate technical aspects and ensure compliance with environmental and social commitments.
Enhanced Environmental and Social Safeguards
Program managers assure that none of the planned works will result in population displacement.
However, an environmental and social action plan has been adopted to regulate on-the-ground interventions, particularly regarding waste management, dust emission reduction, and worker protection.
The framework also includes mechanisms for preventing gender-based violence and harassment on construction sites.
Casablanca-Settat Aspires to Be a Laboratory for Territorial Innovation
Through this initiative, the region asserts its ambition to become a national model for ecological transition and territorial financial governance.
Already regarded as the primary economic engine of the Kingdom, accounting for over 32% of the national GDP, Casablanca-Settat aims to pave the way for other Moroccan regions seeking innovative financing solutions to tackle future economic and climate challenges.
