Casablanca-Settat Raises 1 Billion Dirhams: A First in the Moroccan Bond Market
A Historic Fundraising Effort for the Casablanca-Settat Region
The Casablanca-Settat region is reaching an unprecedented milestone in the history of public finances in Morocco by mobilizing 1 billion dirhams through a bond issuance on the capital market. This makes it the first region in the Kingdom to resort directly to this method of financing, which has so far been mainly reserved for the state and large enterprises. This initiative represents a significant step towards greater financial autonomy for local authorities.
A More Competitive Financing Alternative than Traditional Channels
The bond issuance stands out due to particularly favorable conditions, with an interest rate of approximately 3.9%, significantly lower than those offered by traditional financing methods, such as the Municipal Equipment Fund (FEC), where rates can exceed 6%. This positioning allows the region to significantly reduce its debt costs while accessing resources tailored for financing its structural projects.
Strategic Support from the EBRD
The operation has benefited from 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 is providing technical assistance aimed at strengthening governance and management capacities in the region. This participation bolsters the operation’s credibility among investors and embeds Casablanca-Settat in a dynamic of sustainable finance and structured territorial development.
Strong Financial Fundamentals
The success of this fundraising effort is grounded in rigorous financial management. The region has initiated a process to control its debt while maintaining a high level of investment, with several billion dirhams already mobilized for structural projects. This situation reassures financial markets and confirms the region’s capacity to meet its medium- and long-term commitments.
Investments with Strong Economic Impact
The raised funds will be directed toward strategic projects with high economic and social impact. Key priorities include the development of transportation infrastructure, improving access to water, waste management, strengthening industrial attractiveness, and digital transformation. These investments aim to solidify the role of Casablanca-Settat as Morocco’s economic powerhouse.
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 authorities, provided they have solid governance and balanced financial fundamentals. Access to the bond market could thus become a strategic lever to support regional development and strengthen decentralization.
