Egypt set to issue first sovereign green bonds in MENA region
In an attempt to diversify its debt portfolio, Egypt Finance Ministry is getting ready to issue the country's first sovereign green bonds in the Middle East and North Africa (MENA) region.
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects, unlike regular Eurobonds, which can be directed to any use.
Finance Minister Mohamed Maait said releasing these bonds in global markets will certainly increase investors' confidence in the Egyptian economy and boost the economy's current and future growth.
It will also improve Egypt's environmental rating and lure more investors, he added.
Egypt has a 1.9-billion-dollar portfolio of green bonds, of which 16 percent are in the renewable energy domain, 19% in clean transport, 26% in the sustainable management of water and drainage and 39% in anti-pollution efforts.
The proceeds of these bonds, Maait said, will be channelled to finance the projects that mirror Egypt's commitment to the UN goals for sustainable development.
Credit Agricole, Citibank and HSBC will market the bonds in the MENA region.