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EBRD and BOA seal cooperation agreement

The European Bank for Reconstruction and Development (EBRD) and the Bank of Africa (BOA) signed a technical cooperation agreement in Marrakesh on Thursday to develop a sustainable financial framework.

“On the occasion of the 31st Annual Meeting with the Bank Business Forum, held from 10 to 12 May in Marrakech, EBRD and BOA signed a technical cooperation agreement to collaborate and develop a social, sustainable and green financing framework for BOA, ahead of it. “The first issue of social security,” the EBRD said in a statement.

The planned technical assistance will include analysis to identify key areas for improvement in terms of Bank of Africa capacity, resources, assets and processes against recognized green, social and sustainable bond standards, noted the same source, adding that EBRD will work with BOA to develop an action plan to adopt and implement a sustainable financial framework, with a view to providing this type of bond, MAP reports.

Thus, the EBRD supports Morocco’s financial system and its transition to a green economy through the development of its capital market, the statement said. “Helping Moroccan financial institutions to establish foundations that accelerate the issuance of social and sustainable bonds in the region will enable these institutions to attract a wider and diverse investor base and will have an impact on the country in financing projects with a social dimension. and ecological. ” , adds the EBRD.

“Through this support to the Bank of Africa, the EBRD will strengthen Morocco’s capital markets and facilitate the emergence of a sustainable and flexible financial sector. It also paves the way for a replication of this experience by other local financial institutions. of EBRD said.

“The Bank of Africa’s ambition is to offer innovative financing solutions to the challenges faced by the private sector in Africa, in particular SMEs, including those related to climate and gender,” said Brahim Benjelloun Touimi, Director managing director of the Bank of Africa group. quoted in press release.

Morocco has a relatively developed legal and regulatory framework and infrastructure for its capital market, the EBRD notes, adding that “the Covid-19 pandemic has nevertheless raised new economic and social difficulties, that it is possible to resolve through new instruments. on the capital markets, which allows them to associate green finance with broader social terms “.

Demand from investors and financial institutions for this type of instrument is growing. But the bond market share represents only 27% of emerging market issues.

Bank of Africa is a universal commercial bank that has been present in Morocco since 1959 and is listed on the Casablanca Stock Exchange. Present in 32 countries, it has a well-established network in Africa, Europe, and Asia.

Following the launch of the 1st Green Bond in the Moroccan banking sector in 2016, the Bank of Africa – BMCE Group continues to innovate in its sustainable and inclusive financial instrument by partnering with the EBRD to further develop this framework, in preparation, in particular. , for launching the issue of social and green bonds in favor of the Sustainable Development Goals.

Morocco is a founding member of the Bank and a country in operation since 2012. To date, the EBRD has committed more than € 3.4 billion to 85 projects in the country.

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