International Finance Corporation and AMMC have announced a set of guidelines for new financial instruments to address the issue of climate change. These guidelines were developed by AMMC with advice from IFC, and comprises of updated guidelines for Morocco’s green bonds market, as well as a new structure for the social and sustainability bonds market, combined into a single reference document.
Proceeds obtained from the sale of the bonds are to be channelled into projects addressing climate change (green bonds) and social issues (social bonds).
“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. In addition, they fulfill the commitments we made during the COP 22 held in Marrakech,” said Nezha Hayat, CEO and Chairperson of AMMC.
IFC has played major roles in creating sustainability bond markets in emerging countries. Since the launch of the program, IFC has issued about 15 social bonds across five different currencies summing up 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.
This initiative was brought to life by IFC’s development partners, the Canadian Department of Foreign Affairs, Trade and Development (DFATD) and the Hungarian Export-Import Bank.