Egypt issues 1st green bonds in MENA at $ 750 million

15 / 10 / 2020

By Marwa Nassar - -

Egypt issued the first sovereign green bonds in the Middle East and Africa at London Stock Exchange (LSE) at a total value of $ 750 million.

The bond will be admitted to the Sustainable Bond Market of London Stock Exchange, with the use of proceeds to be deployed across renewable energy, clean transport, sustainable water and wastewater management, and pollution reduction and control.

Denzil Jenkins, Interim CEO, London Stock Exchange plc, commented: “We are delighted to welcome the Arab Republic of Egypt’s debut green bond to London Stock Exchange. The success of this inaugural transaction highlights Egypt’s commitment to building a sustainable future and paves the way for many more issuers in the region to follow this example.

London Stock Exchange provides unparalleled support to governments globally as they lead the transition to a sustainable and a low carbon world. The transaction from Egypt joins over 240 active bonds from issuers in over 60 countries on our Sustainable Bond Market.”

Dr. Mohamed Maait, Egypt’s Minister of Finance of Egypt, said: “We succeeded in issuing the first green bond in MENA region with an offering worth $ 750 million for 5-Year Maturity The sovereign green bond program will help us raise capital from investors who care for both environmental and financial returns. The issuance of international government green bonds in the global markets will enhance the environmental rating of Egypt in addition to increasing the confidence of foreign investors in the Egyptian economy and supporting its current and future growth levels.”

James Cleverly MP, UK Minister of State for the Middle East and North Africa, said: “I am delighted to see the success of Egypt’s debut sovereign green bond issuance – the largest green bond issuance in the Middle East and the first MENA sovereign green bond to be issued in London. The UK and Egypt are setting the agenda for partnership on climate issues, working together in the UN to promote adaptability, resilience and a green and resilient recovery from COVID-19. As we head towards the 2021 UN Climate Conference, COP26, hosted by the UK, we need to see more examples like this of ambitious and forward-thinking action. Egypt is showing its commitment to sustainable development – and I am particularly pleased that London and the UK can play an important role in partnering to achieve it.”