RABAT, Morocco, Oct. 30, 2026 — The African Development Bank has raised 1 billion Moroccan dirhams through its first bond issuance in the country’s currency, marking a significant step in efforts to expand local currency financing and reduce reliance on foreign currencies for development lending across Africa.
The seven-year bond was issued through a private placement to qualified investors and carries a floating interest rate linked to the Moroccan Overnight Index Average, or MONIA, the bank said Friday.
The transaction represents the bank’s first entry into Morocco’s domestic currency bond market and forms part of a broader strategy to diversify its financing instruments beyond the euro and U.S. dollar.
The Abidjan-based lender said the initiative would allow it to provide financing in Moroccan dirhams, offering borrowers alternatives to foreign currency loans and helping them better manage exchange rate risks.
The bank is also considering establishing a dedicated dirham treasury portfolio, potentially financed by converting part of its existing foreign currency liquidity into Moroccan currency.
Such a mechanism would strengthen its capacity to provide local currency loans while supporting the development of Morocco’s domestic financial market.
The bank said Morocco was selected for the pilot initiative because of its longstanding relationship with the institution, strong demand for dirham-denominated financing, the size of its existing investment portfolio and the relative maturity of the country’s financial system.
The initiative is expected to support the development of financial hedging instruments and improve liquidity in Morocco’s derivatives market, helping businesses and financial institutions manage currency and interest rate risks.
The bank said lessons from the Moroccan transaction could guide the introduction of similar financing arrangements in other African currencies as it seeks to expand local currency lending across the continent.
Local currency financing has become an increasingly important priority for African development finance institutions, particularly as exchange rate volatility and dependence on foreign currency borrowing expose governments and businesses to higher debt servicing costs.
By raising funds in domestic currencies, development lenders can potentially reduce currency mismatches between borrowers’ revenues and debt obligations while strengthening local capital markets.
The transaction was arranged with the support of Morocco’s Ministry of Economy and Finance, central bank Bank Al-Maghrib and the Moroccan Capital Markets Authority.
Attijari Finances Corp. served as financial adviser, while Attijariwafa Bank and CDG Capital acted as lead managers.
Morocco has been a member of the African Development Bank since its establishment in 1964 and remains one of its longstanding development partners.
Since 1978, the bank has mobilized nearly 15 billion euros to finance more than 150 projects in Morocco, covering transport, energy, water, agriculture and social protection.
The African Development Bank has 81 member countries, including 54 African nations, and an authorized capital of approximately $325 billion. It maintains the highest possible AAA credit rating from major international rating agencies.
The bank said the Moroccan bond issuance would serve as a foundation for expanding its local currency financing operations and supporting the development of deeper, more resilient financial markets across Africa.
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