The European Bank for Reconstruction and Development (EBRD) will invest MAD 400 mn (EUR 38.4 mn) in Morocco’s railway authority’s (ONCF) MAD 2 bn green bonds issuance, according to a statement. So far, the EBRD is the only international investor committed to investing in the bond, which will be backed by Morocco’s state and financing provider Tamwilcom.

On the cards: The money will partially go towards refinancing current ONCF projects that aim to boost energy efficiency, lower emissions, and transition to electric rail networks. The figure is slated to support the acquisition and upgrade of electric rolling stock, enhancing safety units and substations, and establishing transport planning systems.

Looking ahead: The bank will also roll out a technical cooperation package, which will support ONCF’s future green financing and enhance its reporting standards. It could also pave the way for a potential sustainability-linked loan.

Not their first green bond: EBRD and ONCF partnered in late 2022, issuing Morocco’s first logistics-related green bond.

ONCF has big rail plans: ONCF rolled out a MAD 9.78 bn (c. USD 988.3 mn) railwaydevelopment investment plan back in October for 2025-2027, which includes extending the high-speed rail line (LGV) from Kenitra to Marrakech as well as establish a regional express network (RER) for Casablanca, Rabat, and Marrakech. ONCF also aims to expand its network to serve 43 — or 87% — of Morocco by 2040.

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