Egypt issues first green bonds in MENA region


CAIRO: Egypt on Tuesday issued its very first green sovereign bonds, the first in the Middle East and North Africa (MENA), as part of its efforts to implement renewable energy projects to combat Pollution.
Green bonds are debt instruments used to obtain financing for projects related to the climate or the environment, according to a statement from the Egyptian finance ministry.
The State used the banks Crédit Agricole, CIB and HSBC Holding as structural advisers. Citigroup, Crédit Agricole, Deutsche and HSBC banks have been hired as co-managers of the offer.
Finance Minister Mohamed Maait said the supply of green sovereign bonds in global markets will increase the confidence of foreign investors in the Egyptian economy, support its current and future growth, attract investors interested in environmental and financial returns and improve the country’s environmental rating.
Egypt has a portfolio of eligible green projects worth $ 1.9 billion, including 16% in renewable energies, 19% for clean transport, 26% for sustainable water and water management waste and 39% for pollution reduction and control.
Maait said Vigeo Eiris, an affiliate of US financial services firm Moody’s, conducted the independent review and assessment, in line with Egypt’s strategic sustainability priorities.
“We got a strong second-party opinion on the quality of qualifying environmentally friendly projects,” he added.
Maait said the proceeds from the green bonds would be used to fund projects that reflect Egypt’s commitment to the UN’s sustainable development goals.
Marina Weiss, Regional Director of the World Bank in Egypt, said the bank is ready to share its knowledge and experience with the government, and to provide technical assistance for the post-issue allocation and the preparation of the necessary annual reports. .
Varnam Pedgoli, Head of Sustainable Bonds at HSBC, and Antoine Rose, Head of Sustainable Banking at Crédit Agricole, said Egypt’s framework for green bonds is in line with the International Capital Markets Association’s Green Bonds Principles, as it includes the procedures followed. ensure transparency while maintaining international best practices.
Economist Abdul-Rahman Taha said that the green economy is a global trend that will have a positive impact on the Egyptian budget and increase the volume of foreign investment.
He added that he expects green bonds to become very popular in Egypt.


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