Casablanca-Settat Raises 1 Billion Dirhams: A First in the Moroccan Bond Market
A Historic Fundraising for the Casablanca-Settat Region
The Casablanca-Settat region has reached an unprecedented milestone in the history of 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 utilize this financing method, which has primarily been reserved for the state and major corporations. This initiative represents a significant step towards greater financial independence for local governments.
A More Competitive Financing Option Than Traditional Channels
The bond issuance stands out for its particularly favorable conditions, boasting an interest rate of around 3.9%, significantly lower than the rates offered by traditional financing routes such as the Municipal Equipment Fund (FEC), where rates can exceed 6%. This positioning allows the region to substantially reduce its debt costs while accessing resources tailored to funding its key projects.
Strategic Support from the EBRD
The operation benefited from the support of 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 provides technical assistance aimed at strengthening governance and management capabilities within the region. This involvement boosts the operation’s credibility among investors and aligns Casablanca-Settat with a vision of sustainable finance and structured regional development.
Solid Financial Fundamentals
The success of this fundraising effort is built on rigorous financial management. The region has embarked on a process to control its debt while maintaining a strong level of investment, having already mobilized several billion dirhams for key projects. This situation reassures financial markets and confirms the region’s capacity to meet its commitments over the medium and long term.
Investments with Strong Economic Impact
The funds raised will be directed towards strategic projects with significant economic and social impact. Key priorities include 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 transforming regional financing in Morocco. It serves as a replicable model for other local governments, provided they have strong governance and balanced financial fundamentals. Accessing the bond market could thus become a strategic lever to support regional development and enhance decentralization.
