On 16 November 2016, Banque Centrale Populaire (BCP) launched a €100m green bond, the proceeds of which would be used to refinance BCP’s investments in selected renewable energy projects in Morocco. BCP commissioned UK Green Investment Bank plc (GIB) to produce a Green Impact Report on those projects.
BCP has now completed the issuance of that green bond – Morocco’s first – with International Finance Corporation (IFC), a member of the World Bank Group, and Proparco, a subsidiary of Agence Française de Développement devoted to private sector financing, having invested €100m and €35m respectively.
GIB’s report concluded that the projects refinanced by the bond are expected to help save 938,000 tonnes of CO2 emissions equivalent per year on average – the equivalent of 17.36 million tonnes of CO2 in greenhouse gas savings over the remaining lifetimes of the projects.
The report also outlined GIB’s assessment of the air pollutant emissions and fossil fuel consumption expected to be avoided by those projects. It notes that the bond will contribute to environmental sustainability objectives that are the cornerstone requirement of the Green Bond Principles and that the bond issuance and projects will contribute to five of the UN Sustainable Development Goals.
Evelyn Hartwick, Senior Financial Officer, IFC, said:
Investment into green projects, particularly climate infrastructure, is a priority for IFC. This pioneering green bond in Morocco demonstrates the potential for climate investment in the region and GIB’s Green Impact Report provides a robust assessment of the expected climate benefits arising from the projects refinanced by the bond. This helps IFC to be certain that this investment meets our criteria for climate finance.
Gavin Templeton, Head of Sustainable Finance, GIB, said:
IFC and Proparco are world-leaders in investment into green infrastructure and place the utmost importance on ensuring that their investments achieve their climate finance goals. We believe that our focus on quantification and transparent reporting, developed over four years of investing exclusively in low-carbon infrastructures projects, can help investors understand the green impact of their investments.
The Green Impact Report is available here.
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Notes to editors
About UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With initial funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.
About Banque Centrale Populaire
Banque Centrale Populaire SA is a Morocco-based bank engaged in the provision of financial products and services. Its portfolio includes accounts, cards, credit facilities, insurances and investment management, among others. Its products are targeted at individuals, professionals and businesses.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity.
Proparco is a subsidiary of Agence Française de Développement (AFD) focused on private sector development. It has been promoting sustainable economic, social and environmental development practices for 40 years. Proparco provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America and the Middle-East. It seeks to partner projects in key development sectors – infrastructure (with a specific focus on renewable energies), agribusiness, financial institutions, healthcare and education, etc. – and to boost the contribution of the private sector to achieving the sustainable development goals adopted by the international community in 2015. As a means to this end, Proparco finances businesses that are instrumental in creating decent jobs that pay decent wages, in supplying essential goods and services and in battling climate change.