Rabat – Morocco’s national railway operator ONCF issued its first corporate clean mobility bond. The new bond aims to finance the country’s transition to low-carbon public transit, and attract investment for the high-speed, electric railway system, the Al Boraq project.
Through a collaboration with pan-African development agency FSD Africa, ONCF is building on the success of the first Al Boraq project to raise MAD 1 billion ($95 million) in investment to construct Morocco’s second high-speed railway grid.
Locking in the required capital for the project would allow Morocco’s national railway operator to enhance national connectivity, making it less time-intensive, while equally reducing greenhouse emissions, the company said in an official statement.
ONCF’s latest project is part of an ambitious plan to connect two of Morocco’s biggest business hubs, Tangier to Marrakech, by 2030. Boosting inter-urban connectivity using railways is a determining factor in driving economic development, converging studies indicate.
The first Al Boraq project (LGV) reduced travel times between Tangier and Kenitra – – another business hub – – by 2 hours and 25 minutes, resulting in more than 2.9 million tonnes in reduced carbon emissions over a 30-year period.
Since January 2022, ONCF has made significant strides toward transitioning to green energy. As of July 2022, ONCF sources 25% of its energy consumption from green energy.
The company further aims to boost its green energy mix to 50% by 2023, before phasing out carbon-intensive energy sources altogether by 2030, the statement specifies.
Commenting on the project, FSD Africa CEO Mark Napier said that the project “presents an opportunity for FSD Africa to support the issuance of Africa’s first corporate clean mobility bond.”
“The issuance of green bonds as a tool for unlocking significant capital for sustainability-related investment has been gaining traction in Africa in recent years. We look forward to supporting further green bond issuances,” he added.
British Ambassador in Morocco Simon Martin recently explained that “Morocco’s capacity for financial innovation is powering a new era of post-covid economic growth that, with the right ingredients, can set the Kingdom on a truly sustainable development pathway.”
“Through the work of organizations like FSD Africa and its partners, the British Government is helping support Morocco’s journey to establish low-carbon transport infrastructure through its national railway operator ONCF issuing Africa’s first corporate clean mobility bond,” he underscored.
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