Ministry of Electricity Will Issue USD 700M in Green Bonds in 2023
These bonds will be used to finance green projects that either benefit the private sector or involve a partnership with it.
The Egyptian government is planning to issue green bonds valued at USD 700 million through one of its entities within the Ministry of Electricity. These bonds will be utilised to finance green projects that either benefit the private sector or involve a partnership with it.
The International Finance Corporation (IFC) is expected to serve as an advisor and may also underwrite the issuance, scheduled for the following year. The Organization for Economic Cooperation and Development (OECD) will provide support in this process as part of the government's aim to increase investments in green projects by 50% by 2025. The government is considering future issuances of sustainability bonds and social bonds, diversifying the debt instruments market and attracting foreign investors.
Green bonds are fixed-income instruments designed to fund or refinance eligible green projects, including renewable energy, energy efficiency, waste management, sustainable land use, clean transportation, water management, climate change adaptation, and new cities.
In the past, the Egyptian government has issued green bonds worth USD 750 million, primarily for green projects, particularly in clean transportation. This move made Egypt the first country in the Middle East and North Africa to issue green bonds during the fiscal year 2020-2021.
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Dec 03, 2023