Stocks Market
Casablanca-Settat Region Launches Historic 1 Billion Dirham Bond Issuance
The Casablanca-Settat region has successfully issued a 1 billion dirham regional bond on the Moroccan capital market, becoming the first region in the Kingdom to do so. This landmark financial operation attracted strong institutional investor interest, including participation from the European Bank for Reconstruction and Development. The funds will finance the region's 2022-2027 development plan and support green initiatives under the EBRD's Green Cities program.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Historic Bond Issuance Marks New Era for Regional Financing in Morocco
The Casablanca-Settat region has achieved a significant milestone in Morocco's financial landscape by issuing a 1 billion dirham regional bond on the capital market, becoming the first region in the Kingdom to access this form of financing. The successful issuance, completed on Thursday, represents a major step forward in innovative territorial development funding and expands local authorities' access to capital markets.
The bond issuance attracted substantial interest from institutional investors, with national subscribers including 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. The European Bank for Reconstruction and Development (EBRD) also participated as a leading international investor, committing 400 million dirhams to the operation alongside 2 million euros in technical assistance for developing the region's Green Action Plan.
Haytham Eissa, EBRD Director for Morocco, expressed pride in supporting the Casablanca-Settat region through this bond issuance, noting it represents the first of its kind for a Moroccan region and reinforces the Kingdom's decentralization vision. Abdellatif Maâzouz, President of the Casablanca-Settat Regional Council, described the operation as "historic," emphasizing it marks the first step in financing the Regional Development Plan.
The bond proceeds will support implementation of strategic projects outlined in the 2022-2027 Regional Development Plan while also enabling the region's integration into the EBRD's Green Cities program, which focuses on financing sustainable and innovative urban solutions. Additionally, the funds will finance the development of a digital transformation framework and roadmap for implementing an integrated management software system to improve the region's financial and operational performance.
This issuance aligns with the High Directives of King Mohammed VI expressed in his message to participants at the Tangier Advanced Regionalization Assizes, particularly regarding diversifying regional financing sources. The operation also demonstrates market and investor confidence in the sustainable and inclusive development initiatives undertaken by the Casablanca-Settat region in partnership with local and international stakeholders.
The successful bond issuance follows the region's comprehensive debt cleanup, which reduced its debt obligations by 1 billion and 31 million dirhams since October 1, 2021, before issuing this bond. During the same period, the region invested 10 billion dirhams in programmed investments, with 7 billion dirhams already paid out, strengthening its financial credibility and capacity to mobilize resources for territorial development.