Provision of an additional 3rd senior unsecured tranche of up to EUR 13 million under the GCF GEFF Regional - Morocco II framework to Bank of Africa ("BOA"), of which up to EUR 9,750,000 to be provided by EBRD and up to EUR 3,250,000 by the Green Climate Fund ("GCF") under the GCF-Green Economy Financing Facility ("GEFF") Regional Framework. The 3rd tranche will be provided in addition to two existing tranches of EUR 12,500,000 each. The total loan amount will be increased to up to EUR 38 million. The proceeds of the GCF GEFF loan will be on lent to private companies to finance Green Economy investments in climate change mitigation and adaptation technologies, in a gender-responsive way.
The project will contribute to its objective of building a green economy in Morocco by on-lending to private sector sub-borrowers to implement green investments in energy efficiency, renewable energy and climate resilience measures as well as including additional targeted activities promoting gender responsive on-lending.
ETI score: 75
The transaction is the 4th facility provided by EBRD to BoA under the GCF - GEFF Regional Framework in Morocco. The project supports the Green TI quality through the provision of funding and know-how to financial intermediaries financing private sector investments in high performing climate change mitigation and adaptation technologies and solutions. This will facilitate Morocco's transition to environmentally sustainable, low-carbon and climate-resilient economy.
The project is also contributing towards building a green economy by facilitating the expansion of green energy and resource efficiency lending in Morocco and showing positive demonstration effects.
BANK OF AFRICA
Bank of Africa ("BOA") is the third largest bank in Morocco in terms of total assets and loans at YE2021. BOA will be allowed to on-lend all or part of the proceeds of the loans to Maghrebail, its fully consolidated leasing subsidiary where it holds 52.46% of the capital, and Salafin, a consumer credit subsidiary where BOA holds 62% of capital.
EBRD Finance Summary
Total Project Cost
The project will build on the successful experience of existing green products. The project will offer a combination of medium-term financing and technical expertise into a package that promotes targeted investment in climate mitigation and adaptation technologies in the private sector in Morocco.
Furthermore, the client will benefit from EBRD's expertise to enhance women and men's equal opportunity to access finance provided under the GEFF programme for the adoption of green technologies. Therefore, the project will ultimately help women and men sub-borrowers build their resilience in the face of a changing climate.
Environmental and Social Summary
Categorised FI (ESP 2019). BoA is an existing Client of the Bank, who has been regularly and satisfactorily reporting on their E&S performance under previous exposure. BoA is required to continue to comply with Performance Requirements (PRs) 2, 4 and 9, adopt and implement the EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending and submit Annual Environmental and Social Reports to the Bank. Beneficiaries financed through the Green Economy Financing Facility will be required to comply with national requirements for environment, health and safety and labour standards and the eligibility criteria for Green projects. The use of proceeds of this transaction will likely include solar sub projects, such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach. The project is consistent with the GET approach and the GET share is 100%.
Technical Cooperation and Grant Financing
The implementation of the GCF GEFF loan will be supported by a comprehensive Technical Cooperation ("TC") programme to provide implementation support to BOA and sub-borrowers. The TC programme will also support gender activities that aim to enhance women and men's equal opportunity to access climate finance for green technologies. The TC is expected to be funded by the grant resources from the European Union, the Green Climate Fund and EBRD's Shareholder Special Fund ("SSF").
Company Contact Information
140 Avenue Hassan II Casablanca, Morocco
PSD last updated
05 Jul 2022
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