Innovative Financing Initiative in Morocco
The Casablanca-Settat Region has made a remarkable stride in innovative financing by successfully issuing a regional bond worth 1 billion dirhams (MAD). This historic move, completed on Thursday, marks a significant milestone as it positions the region as the first in Morocco to undertake such a financial operation. The issuance is a pivotal step towards mobilizing innovative funding sources aimed at enhancing territorial development and facilitating local authorities' access to capital markets.
Interest from institutional investors has been notably high for this bond issuance. Key national subscribers include 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. Additionally, the operation has attracted the participation of a major international investor, the European Bank for Reconstruction and Development (EBRD), which has pledged to invest 400 million dirhams and provide 2 million euros in technical assistance to support the development and implementation of a green action plan in the region.
Haytham Eissa, the director of the EBRD office in Morocco, expressed pride in supporting the Casablanca-Settat Region through this bond issuance. He highlighted that this is the first bond of its kind for a region in Morocco, reinforcing the Kingdom's vision for decentralization. Abdellatif Maâzouz, the president of the Casablanca-Settat Regional Council, described this operation as "historic," noting that it serves as an initial step in financing the Regional Development Plan.
Strategic Development and Financial Growth
The bond issuance is part of a broader strategy to implement the High Royal Guidelines which advocate for the development of innovative financing mechanisms to surpass traditional funding methods. The raised funds will contribute to a plan aimed at enhancing the region's financial and operational performance, which includes a framework for digital transformation and a roadmap for implementing an integrated management software system.
This financial boost will support the realization of key projects outlined in the Regional Development Plan for 2022-2027, while also paving the way for the integration of the Casablanca-Settat Region into the EBRD's Green Cities program, which focuses on financing sustainable and innovative urban solutions. Moreover, the operation demonstrates a significant vote of confidence from the market and investors in the sustainable and inclusive development initiatives championed by the Casablanca-Settat Region, in collaboration with local and international stakeholders.
Importantly, this bond issuance follows a thorough restructuring of the region's existing debt, enhancing its financial credibility and ability to mobilize resources for territorial development. Since October 1, 2021, the region has successfully reduced its debt obligations by 1 billion and 31 million dirhams prior to this issuance. During this same period, the region has also engaged in 10 billion dirhams worth of programmed investments, of which 7 billion dirhams have been paid.
As reported by boursenews.ma.
