The government of Egypt is planning to issue $500 million worth of green bonds to finance several green infrastructure projects in fiscal year 2023. The initiative will enable the North African country to accelerate the implementation of the United Nations' Sustainable Development Goals (SDGs) by 2030.
Egyptian authorities recently announced that they will issue $500 million worth of green bonds to commercial, corporate and investment banks globally by 2023. The proceeds of the bond will be used specifically to finance green projects including water, renewable energy and electric mobility.
“Egypt is seeking to increase its efforts to diversify sources and tools of financing that would reduce the cost of development investments, especially with the current global economic crisis. Green bonds will help support the economy, create job opportunities and fight global warming,” said Mohamed Maait, Egypt’s Minister of Finance. He was speaking at the Egyptian Forum for International Cooperation and Development Finance held recently in the new administrative capital Al Masa.
In 2020, Egypt launched green bonds with the aim of mobilizing the maximum amount of funds to finance renewable energy, green mobility, sustainable water and wastewater management, pollution reduction and control to the tune of $1.9 billion (46.8 billion Egyptian pounds). To achieve this, the Egyptian government has engaged Crédit Agricole Bank, Commercial International Bank (CIB) and HSBC Holding as structural advisors.
Among the major subscribers to the Egyptian bond market is the International Finance Corporation (IFC). In 2022, the World Bank Group’s private sector financing arm entered into an agreement with Egyptian pharmaceutical company Rameda to finance green solutions at its Cairo-based generic drug, dietary supplement, and veterinary product manufacturing facilities. This partnership will allow Rameda to reduce its water and energy use in order to reduce its environmental impact.