The national solar agency for COP22 host Morocco has issued the country’s first green bonds for renewable energy, Reuters has confirmed.
The bond issue by the Moroccan Agency for Solar Energy (Masen) is for three solar schemes that will form part of a 170 MW PV plant in the heart of the country called Noor PV 1, which is to be part of the wider Noor Power Station, which will be built predominately using concentrated solar power (CSP).
The issuance of the green bonds amounts to 1.15 billion dirhams ($118 million), and will fund the solar PV projects in Laayoune, Boujdour and Ouarzazate.
The World Bank also announced the purchase of $100 million in World Bank green bonds by the central bank of Morocco, Bank Al-Maghrib, which will be used for the bank’s reserves management.
The green bonds mature on December 15, 2019 and have a semi-annual fixed rate coupon payment. "We need a global financing system that’s fit for purpose to factor in climate risks and opportunities," said World Bank group president Jim Yong Kim. "Developing a green bond market is key to mobilizing the private capital flows needed to address climate change."
The governor of Bank Al-Maghrib, Abdellatif Jouahri, added: "Having become increasingly aware of the effects of climate change at the COP22 Marrakesh, countries are now specifying how to achieve commitments made [last year] in Paris. Bank Al-Maghrib’s investment in World Bank green bonds has been made in that context."
Morocco is hosting COP22 between November 7 – 18.