Rabat, Morocco, July 6, 2018—IFC, a
member of the World Bank Group, and AMMC, the Moroccan capital markets
authority, announced today a comprehensive set of guidelines for new financial
instruments to address climate change and drive positive social outcomes
in the country.
The new guidelines have been developed by
AMMC with advisory support from IFC, and comprise updated guidelines for
Morocco’s green bonds market, as well as a new framework for the social
bonds market, combined into a single reference document.
Proceeds from the sale of sustainability bonds
are earmarked for projects addressing climate change (green bonds) and
social issues (social bonds); for example, helping micro businesses access
finance or providing financial support to women-owned businesses. In addition
to promoting more financial inclusion and socioeconomic advancement, they
can also finance projects that target critical infrastructure and services
such as healthcare, education, and social housing.
“The new guidelines illustrate our
continuous efforts to foster green finance to create a more inclusive future
for everyone, and are also consistent with the kingdom’s objectives to
promote sustainable development and help create a regional financial hub,”
said Nezha Hayat, CEO and Chairperson of AMMC. “In addition, they fulfill
the commitments we made during the COP 22 held in Marrakech.”
has played a leading role in developing sustainability bond markets in
emerging countries. IFC serves as co-chair of the social bond working group
of the International Capital Market Association (ICMA).
social bond program, which celebrated its first anniversary in March, aligns
with ICMA’s Social Bond Principles. Since the launch of the program, IFC
has issued 15 social bonds across five different currencies amounting to
a total volume of $917 million.
“IFC’s aim is to deepen capital markets
in Morocco, which will help foster social inclusion and support the development
of the country’s green economy,” said Xavier Reille, IFC Country Manager
for the Maghreb region.
IFC has also played a key role in developing
the green bond market, which was worth $155 billion in 2017, a 64 percent
increase from the previous year. IFC invests in green bonds issued by the
private sector, often as an anchor investor, and helps governments and
public authorities create credible and transparent capital markets, part
of larger efforts to combat climate change and encourage more capital markets
financing to the real economy.
This initiative was made possible thanks to
IFC’s development partners, the Canadian Department of Foreign Affairs,
Trade and Development (DFATD) and the Hungarian Export-Import Bank.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In FY17, we delivered a record $19.3 billion in long-term financing for
developing countries, leveraging the power of the private sector to help
end poverty and boost shared prosperity. For more information, visit www.ifc.org