Cairo sells $750m of green bonds

05 October 2020
Egypt has become the first sovereign in the Mena region to issue green bonds

Egypt has become the first sovereign in the Mena region to issue green bonds with a $750m issuance.

In a statement, Minister of Finance Mohamed Maait said that the five-year bonds will offer investors a 5.25 per cent yield.

He added that they attracted many more investors than expected, which allowed the issuance to increase from the announced value of $500m.

The proceeds of the bonds will be used to finance projects that meet Egypt's commitment to the UN goals for sustainable development.

Credit Agricole, Citibank and HSBC marketed the bonds.

Green finance is becoming a key trend in the Middle East and North Africa (Mena) region as the environment and sustainable development rise up the agenda.

There has been a series of corporate green bond issuances across the region in recent months.

In mid-September, Saudi Electricity Company (SEC) completed the issuance of a $1.3bn dual tranche international green sukuk. The bonds are made up of a $650m five-year tranche with a fixed profit rate of 1.74 per cent and a $650m 10-year tranche with a fixed profit rate of 2.413 per cent.

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