Egypt leads the way in issuing $500 million sustainable panda bonds, pioneering in the Middle East and Africa

Egypt has marked a significant milestone as the first country in the Middle East and Africa to issue sustainable panda bonds in the Chinese financial market

These bonds, valued at approximately CHY 3.5 billion or $500 million, will fund projects aimed at advancing sustainable development objectives.

Minister of Finance, Mohamed Maait, highlighted that these bonds carry a favorable annual interest rate of 3.5% for a three-year term, presenting a competitive advantage over international dollar bond offerings, particularly in the face of global economic uncertainties.

Furthermore, these bonds benefit from a credit guarantee provided by esteemed international development institutions, including the Asian Infrastructure Investment Bank and the African Development Bank, both boasting high credit ratings. Minister Maait emphasized that the Ministry collaborated closely with these guarantors to meticulously complete all preparatory steps for the issuance of panda bonds within the expansive Chinese financial market, which ranks as the second-largest worldwide.

This move is strategically geared towards broadening the spectrum of financing resources and tapping into novel global markets. Maait further noted the substantial interest shown by Chinese investors, underscoring the bonds’ alignment with sustainable financing policies across Asia and Africa. He underscored that these bonds conform to the sustainable financing framework announced by the Egyptian sovereign wealth fund during the Finance Day of the Climate Summit hosted by Egypt.

Ultimately, these bonds not only serve as a fresh avenue for deepening collaboration between Egypt and China, but also as a platform for knowledge exchange and a catalyst for attaining sustainable development targets. They play a pivotal role in advancing green and sustainable financing, aligning seamlessly with investment as a cornerstone of Egypt’s 2023 strategy for sustainable development.