ONCF Green Bond Secures EBRD Investment for Sustainable Rail Development in Morocco

The Office National des Chemins de Fer (ONCF), Morocco’s national railway company, has secured an investment of MAD 400 million (EUR 38.4 million) from the European Bank for Reconstruction and Development (EBRD). This funding is part of a larger MAD 2 billion (EUR 192 million) Green Bond. The Bond will be aligned with the Land Transport Criteria of the Climate Bonds Standard as verified by a Second Party Opinion ("SPO") and certified by the Climate Bonds Standard Board.

The proceeds will be used to refinance a portion of ONCF's local outstanding commercial debt related to a series of prior investments targeting low carbon sustainable connectivity. The Bank's participation in Tranche A will be used to refinance debt linked to two projects under ONCF's investment programme: (i) the capacity increase through the construction of additional passenger and freight rail lines between the cities of Casablanca and Kenitra, and (ii) the acquisition and upgrade of electrified rolling stock. The investment will result in overall capital market development by supporting the second Green Bond in the sustainable infrastructure sector in Morocco.

With an ETI score of 74, the project promotes resilient and green financing, reinforcing ONCF’s commitment to environmental sustainability. Additionally, a technical assistance programme will help ONCF transition to International Financial Reporting Standards (IFRS) and develop a Sustainability-Linked Loan (SLL) framework.

The ONCF Green Bond is Morocco’s second sustainable infrastructure bond, reflecting a growing shift towards eco-friendly transport solutions and positioning ONCF as a key player in railway decarbonisation.