The Asian Infrastructure Investment Bank (AIIB) and the African Development Bank (AfDB) have provided guarantees to support the issuance of Egypt’s first Sustainable Panda Bond at a value of RMB3.5 billion. This bond is the first issuance of an African sovereign in the Chinese interbank bond market, underscoring Egypt’s commitment to driving sustainable development.
The guarantees from the two multilateral development banks with triple-A ratings helped attract investors and secured competitive terms for the transaction.
The bond proceeds will support Egypt’s inclusive growth and green objectives under its Sovereign Sustainable Financing Framework launched ahead of COP27 in 2022 to finance Paris Agreement-aligned digital and transportation projects. These projects will further contribute to reducing carbon emissions and improving the livelihood of Egyptian citizens.
“This is the first guarantee provided by AIIB to a sovereign issuer and is in line with AIIB’s commitment to promoting sustainable development and mobilizing private capital to strengthen financial support to our Members’ infrastructure sector,” said AIIB Director General (Banking) Najeeb Haider. “Our guarantee will support Egypt to mobilize resources for sustainable transport and digital infrastructure, which will drive green growth."
“Being the first African sovereign to issue Sustainable Panda Bonds is a historical move not just for the country but for the entire continent,” said AIIB Director and Vice Minister of Ministry of Finance of Egypt Ahmed Kouchouk, “We have paved the way for accessing alternate, sustainable financing for our African neighbors. This reflects our unwavering commitment to unlock resources at scale to support green development.”
The project was approved by AIIB’s Board of Directors during AIIB’s Board Meetings held in Cairo last month. The Board meeting was followed by AIIB’s Eight Annual Meeting held Sep. 25-26 in Sharm El-Sheikh. Egypt is AIIB’s founding member and as of today, AIIB has approved six projects amounting to USD1.48 billion across the energy, transport and water sectors in the country.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.