The Municipal Equipment Fund (FEC) consolidates its commitment to sustainable and inclusive territorial development for the year 2024.
“In line with the strategic commitment of the Kingdom of Morocco regarding sustainability, the FEC continued, in 2024, its determination to strengthen its technical and financial support for territorial projects that align with sustainable development goals, thereby contributing to the strengthening of the resilience of territories in the face of climate change challenges,” the bank stated in a press release.
In this dynamic, the Fund adopted a strengthened approach to integrating climate risk and opportunity management into its Environmental and Social Policy (E&S), thus consolidating its alignment with international sustainability standards, the same source continued.
Overall, during the first half of 2024, the FEC aligned its overall risk strategy and its breakdown into strategies and policies by type of risk, as well as its risk appetite framework, with best practices in the banking sector.
The year 2024 was also marked by the FEC signing two new financing agreements, respectively with the French Development Agency (AFD) and the African Development Bank (AfDB), for an amount of 100 million euros each.
These operations are part of the bank’s financial strategy, open to international opportunities, which allows it to sustain and diversify its sources of financing, in order to offer the best financing conditions to its clients.
Moreover, in the year 2024, the FEC signed three major financing agreements, respectively with the Drâa-Tafilalet Region, the Tangier-Tetouan-Al Hoceima Region, and the Rabat-Salé-Kénitra Region, through the granting of three credit lines for a total amount of 6 billion dirhams (MMDH).
In accordance with the E&S policy of the Institution, the results of the E&S rating indicate that the majority of projects financed by the bank by the end of December 2024 are classified in the “D or C categories” and concern projects with minimal and manageable risks.
On the operational level, loan commitments and disbursements reached 2.569 MMDH and 1.821 MMDH respectively for the year 2024, allowing the FEC to contribute to the financing of several projects carried out by local authorities in various intervention sectors.
It should be noted that loan activity at the end of December 2024 was marked by a return to a normative level compared to the year 2023, which had been marked by the co-financing by the FEC of a strategic project concerning the construction of water supply works as part of the interconnection of two hydraulic basins, distinguished by the importance of its investment volume.
At the end of the 2024 financial year, the bank recorded a positive evolution of its main financial indicators, as the net banking income reached 672 million dirhams, slightly up compared to the previous financial year.
For their part, receivables from clients reached nearly 27.5 MMDH by the end of December 2024.