Casablanca-Settat's Historic Bond Issuance
The Casablanca-Settat region has successfully concluded the issuance of a groundbreaking regional bond amounting to 1 billion dirhams (MMDH) on the Moroccan capital market. This significant financial maneuver positions the region as the first in Morocco to undertake such an innovative financing operation, marking a pivotal moment in its development strategy.
This bond issuance represents a major step forward in mobilizing innovative funding to support regional development and enhance local authorities' access to capital markets. The operation garnered substantial interest from institutional investors, with national subscribers including prominent entities such as the Caisse de Dépôt et de Gestion (CDG), Banque Centrale Populaire (BCP), BMCE Capital Gestion, CIH Capital Management, Wafa Gestion, Marogest, and Upline Capital Gestion. Notably, it also attracted investment from a leading international player, the European Bank for Reconstruction and Development (EBRD).
Support and Future Implications of the Bond
During a press statement made on this occasion, Haytham Eissa, the Director of the EBRD Office in Morocco, expressed pride in the bank's support for the Casablanca-Settat region through this bond issuance. The EBRD is contributing 400 million dirhams and providing technical assistance worth 2 million euros to develop and implement a green action plan for the region. Eissa highlighted that this is the first such issuance for a region in Morocco, reinforcing the Kingdom's vision of decentralization.
Abdellatif Maâzouz, the President of the Casablanca-Settat Regional Council, described this operation as "historic," emphasizing that this bond marks the initial phase in financing the Regional Development Plan. He noted that this initiative aligns with the Royal High Directions, which advocate for innovative financing mechanisms to transcend traditional funding sources.
Moreover, the funds raised will also facilitate the development of a plan aimed at enhancing the region's financial and operational performance. This plan will include a digital transformation framework and a roadmap for implementing an integrated management software system. The capital generated will support the execution of structural projects outlined in the Regional Development Plan for 2022-2027 and will integrate the Casablanca-Settat region into the EBRD's Green Cities program, which focuses on financing sustainable and innovative urban solutions.
This bond issuance is consistent with the high directives of His Majesty King Mohammed VI as articulated in his message to participants at the Advanced Regionalization Conference in Tangier, emphasizing the importance of diversifying financing sources for regions. Additionally, it serves as a testament to the market's confidence in the sustainable and inclusive development initiatives spearheaded by the Casablanca-Settat region, in collaboration with local and international stakeholders.
Furthermore, this operation follows a thorough cleanup of the region's previously incurred debt, enhancing its financial credibility and resource mobilization capability for territorial development. It is noteworthy that the region has successfully reduced its debt commitments by 1 billion and 31 million dirhams since October 1, 2021, prior to this bond issuance. Concurrently, the region has invested 10 billion dirhams in programmed investments during the same period, with 7 billion dirhams already disbursed.
As reported by lopinion.ma.
