Washington [United States], October 10 : The World Bank (International Bank for Reconstruction and Development) unveiled a significant development on October 9, as Bank Al-Maghrib, the Central Bank of Morocco, confirmed its investment in two Sustainable Development Bonds issued by the World Bank.
According to a press release by The World Bank, this strategic move aligns with Bank Al-Maghrib's reserves management objectives and underscores Morocco's commitment to sustainable finance.
The announcement coincided with the commencement of the World Bank Group - International Monetary Fund (IMF) Annual Meetings held in Marrakech, Morocco, dedicated to advancing sustainable outcomes for both people and the planet.
The bonds in question, totaling EUR 200 million, consist of a EUR 100 million 3-year and a EUR 100 million 5-year maturity.
These bonds will not only bolster the World Bank's initiatives for sustainable development but also provide Bank Al-Maghrib with annual fixed-rate coupons as part of its investment strategy.
The timing of this investment is particularly significant, as Morocco hosts the Annual Meetings for the first time on the African continent in half a century.
This unique opportunity enables Morocco to emphasize the importance of integrating climate action into regional and continental agendas.
The World Bank has been at the forefront of championing climate-conscious development, channeling resources into projects addressing resilient food systems, clean and renewable energy, as well as environmental and water security across its global portfolio, including various African nations.
In line with its commitment to mainstreaming climate change, the World Bank ensures that over 90% of its new projects in more than 75 countries incorporate climate components.
Notable examples include efforts in North Africa to combat water scarcity by investing in the resilience of drinking water supply and irrigation systems, serving as a blueprint for other water-challenged regions.
In sub-Saharan Africa, the World Bank focuses on enhancing agri-food systems' resilience through a value-chain approach. Moreover, the bank is spearheading sustainable energy access through investments in renewable sources throughout the continent.
The Sustainable Development Bonds issued in this context are set to mature on October 6, 2026, and October 6, 2028, respectively.
These bonds fall under the World Bank's Sustainable Development Bond Framework, which aims to raise funds for sustainable development projects that positively impact both social and environmental aspects in developing countries while highlighting key development themes across various sectors.
Bank Al-Maghrib's investment in these bonds not only aligns with its financial strategy but also underscores the importance of sustainable development on a global scale, as it joins hands with the World Bank in the pursuit of a more sustainable and resilient future.
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