The European Bank for Reconstruction and Development (EBRD) is strengthening Morocco’s capital markets by investing 400 million Moroccan dirhams (about €36.8 million) in a new bond issued by the Casablanca-Settat region. This is a historic moment for Morocco because it is the first time a regional authority in the country has issued a bond, marking an important step in developing local financial markets. The total value of the bond is 1 billion dirhams (around €92 million), and it is being issued in the domestic market using Moroccan currency. The funds raised will help the Casablanca-Settat region move forward with major projects under its 2022–2027 Regional Development Plan.
By turning to the bond market, the region is diversifying the way it finances development instead of relying only on traditional sources of funding. EBRD’s investment also allows the region to join the Bank’s Green Cities programme, which focuses on helping cities and regions address environmental and climate-related challenges. As part of this programme, Casablanca-Settat will prepare a Green City Action Plan that outlines steps for improving sustainability and climate resilience. The region will also launch a pilot project focused on creating better, cleaner and more inclusive mobility and transport solutions.
In addition to the bond investment, the EBRD is providing a €2 million technical cooperation package. Part of this support is funded by the Netherlands through the High-Impact Partnership on Climate Action. The package will support the design of the Green City Action Plan and help the region improve its financial and operational management systems.
This includes developing a digital transformation plan and a roadmap for implementing enterprise resource planning tools. EBRD’s Head of Morocco, Haytham Eissa, explained that this first regional bond is a major advancement for Morocco’s capital markets. He said the Bank’s investment will help attract sustainable finance for urban development while strengthening investor confidence in regional and municipal issuers.
Abdellatif Maâzouz, President of the Casablanca-Settat region, said the bond is an innovative financing tool that aligns with Morocco’s national vision for advanced regional development. He added that the strong market response shows confidence in the region’s commitment to sustainable and inclusive growth. He also noted that the issuance follows a restructuring of the region’s debt, which has helped improve its financial stability.
This is only the second municipal-type bond ever issued in Morocco and the first by a regional authority, making it an important milestone for the country’s financial sector. With EBRD’s participation, the issuance is expected to be successful and contribute to building a stronger and more resilient municipal bond market. Casablanca-Settat is one of Morocco’s most important economic regions, contributing more than 31% of the country’s GDP.
It is home to a large share of Morocco’s industry, exports and investment. The region’s development plan focuses on climate resilience, sustainable transport, digital transformation and reducing regional disparities. Since 2012, the EBRD has invested more than €6 billion in Morocco, supporting private sector growth, green initiatives and sustainable infrastructure.
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