EBRD invests €38.4 million in Moroccan rail operator

The European Bank for Reconstruction and Development injected 38.4 million euros-via a green bond issuance- in Moroccan rail operator ONCF, as the latter expands its network.

“Issuing the bond will partially refinance the debt from ONCF’s latest development round designed to modernize and electrify the network; acquire and upgrade electric rolling stock; address safety units and substations; and develop and integrate transport planning systems,” EBRD said in a statement.

The investment will support ONCF’s transition to electric, improve energy efficiency and lower greenhouse gas emissions, as well as promoting the broader shift to a more environmentally friendly form of transport.

The package will also support ONCF’s transition to adopting the International Financial Reporting Standards (IFRS), it said.

This is the second bond issue by ONCF, following EBRD’s successful investment in ONCF’s first issue in 2022.

ONCF has previously announced that 90% of its trains operate on wind energy.

By 2040, Morocco plans to connect 43 with the rail network, from only 23 currently, which will benefit 87% of the population.