The International Finance Corporation (IFC), part of the Washington-based World Bank, and Proparco, a subsidiary of Paris-based Agence Francaise de Developpement (AFD), are set to invest in the first green bond issued by the local Banque Centrale Populaire (BCP) in Morocco.

The financing marks the first green bond issuance in foreign currency in Morocco, and also represents the IFC and Proparco’s first green bond investment in the region. The 10-year maturity bond will be used to provide long-term funding for BCP to refinance investments for selected renewable energy projects in Morocco. The IFC will invest €100m ($112.7m), with Proparco set to invest €35m in the issuance.

Morocco has set one of the most ambitious targets for implementing renewable schemes in the region, with Rabat targeting for 42 per cent of its power to be generated from renewable energy resources by 2020.

MEED recently reported that Saudi Arabia’s Acwa Power had achieved financial close on the 177MW Noor photovoltaic (PV) 1 solar project in Morocco.

The Saudi developer will develop the project under a 20-year build-own-operate-transfer (BOOT) scheme, with the Moroccan Solar Agency (Masen) the offtaker for power produced.

Masen is the lender of record for the project, securing financing from Germany’s KfW development bank and a green bond issuance. The project will have a total cost of $220m, with financing secured for $175m debt and $45m equity.