GIB appraises green impact of €100m Moroccan green bond

Banque Centrale Populaire (BCP) today launched a €100m green bond at COP 22 in Marrakesh, the proceeds of which will be used to refinance its investments in selected renewable energy projects in Morocco.

BCP enlisted UK Green Investment Bank plc (GIB) to produce a Green Impact Report on the projects to be refinanced by the BCP bond. The report outlines GIB’s assessment of the greenhouse gas emissions, air pollutant emissions and fossil fuel consumption expected to be avoided by those projects.

The report concludes that the projects will have a positive green impact. It further notes that the bond will contribute to environmental sustainability objectives that are the cornerstone requirement of the Green Bond Principles, as defined and promoted by the International Capital Market Association.

The findings of the report are based on the methods that GIB has developed to assess the green impact of its own investments. It is the first time that GIB has applied this approach to projects financed by third parties or the review of a green bond.

GIB is now discussing the commercial application of its green impact reporting methodology with other market participants.

"Investment in green infrastructure is growing, but the market has lacked a standard, credible and transparent method of measuring just how green investments are. We believe that our unique approach to green impact reporting, a method that’s been developed over four years of investing exclusively in low-carbon infrastructure projects, can help fill that gap."

Gavin Templeton
Head of Sustainable Finance, GIB

"This green bond, in line with BCP’s strategic plan, illustrates our continuous endeavours to promote sustainable and environmentally friendly projects through the financing of eligible investment."

Si Mohammed Hajjam
Head of Project Finance, BCP

The Green Impact Report is available here.

The Moroccan financial regulator L’Autorité Marocaine du Marché des Capitaux has made the bond’s preliminary prospectus available here.