Casablanca-Settat Raises 1 Billion Dirhams: A First for the Moroccan Bond Market
A Historic Fundraising Effort for the Casablanca-Settat Region
The Casablanca-Settat region has reached an unprecedented milestone in the history of territorial public finance in Morocco by mobilizing 1 billion dirhams through a bond issuance in the capital market. This makes it the first region in the Kingdom to directly use this financing method, which has traditionally been reserved for the government and large enterprises. This initiative represents a significant step towards greater financial autonomy for local authorities.
A More Competitive Financing Option than Traditional Channels
The bond issuance has been distinguished by particularly favorable terms, with an interest rate close to 3.9%, significantly lower than those offered by traditional financing sources such as the Communal Equipment Fund (FEC), where rates can exceed 6%. This positioning allows the region to significantly reduce its borrowing costs while accessing resources tailored to the financing of its key projects.
The Strategic Support of the EBRD
The operation has received support from the European Bank for Reconstruction and Development (EBRD), which subscribed to 40% of the loan, totaling nearly 400 million dirhams. In addition to this investment, the EBRD is providing technical assistance aimed at enhancing governance and management capacities within the region. This participation bolsters the credibility of the operation among investors and integrates Casablanca-Settat into a framework of sustainable finance and structured territorial development.
Strong Financial Fundamentals
The success of this fundraising effort is founded on rigorous financial management. The region has embarked on a process to control its debt while maintaining a high level of investment, with several billion dirhams already mobilized for key projects. This reassures financial markets and confirms the region’s capacity to meet its medium- and long-term obligations.
Investments with Significant Economic Impact
The funds raised will be directed towards strategic projects with high economic and social impact. Priorities include the development of transport infrastructure, improving access to water, waste management, enhancing industrial attractiveness, and digital transformation. These investments aim to consolidate the role of Casablanca-Settat as the economic engine of Morocco.
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 authorities, provided they possess solid governance and balanced financial fundamentals. Access to the bond market could thus become a strategic lever for supporting regional development and strengthening decentralization.
