The proceeds from the sale of sustainability bonds are earmarked for green bonds and social bonds.
The International Finance Corporation (IFC) has partnered with the Moroccan Capital Markets Authority (AMMC) for new financial instruments to address climate change and drive positive social outcomes in the country.
“The new guidelines illustrate our continuous efforts to foster green finance to create a more inclusive future for everyone and are also consistent with the kingdom’s objectives to promote sustainable development and help create a regional financial hub,” said Nezha Hayat, CEO and Chairperson of AMMC.
In a statement by IFC, the new guidelines developed by AMMC and IFC, comprise of updated guidelines for Morocco’s green bonds market, as well as a new framework for the social and sustainability bonds market, combined in a single reference document.
The sale of sustainability bonds is earmarked to promote more financial inclusion and socioeconomic advancement which include helping micro businesses to access finance and provide financial support towards women-owned businesses.
Also, they can finance projects that target critical infrastructure and services such as healthcare, education, and social housing.
IFC, a member of the World Bank Group, has played a leading role in developing sustainability bond markets in emerging countries, which saw $155 billion worth of green bond market in 2017, a 64 per cent increase from the previous year.