Egypt banks on green bonds to raise finances for US$1.9bn green projects

EGYPT Egypt, the largest economy in North Africa, is banking on green bonds in new drive to drive the country’s future and has recently launched green bonds with the aim of mobilising the maximum amount of funds to finance its green projects.

According to Egyptian Finance Minister Mohamed Maait, the country’s portfolio of green initiatives amounts to US$1.9 billion (about LE30 billion) and are spread in a number of sectors from renewable energy to sustainable water management.

The Egyptian green bonds which are the first to be issued by a government in the Middle East and North Africa region demonstrate the government’s commitment to a sustainable future.

A number of green projects have already been launched by the Egyptian government and could benefit from part of the finances raised by the green bonds.

Just recently, Egypt announced that a group of Emirati investors have just obtained land from the New and Renewable Energy Authority (NREA) for the construction of a 500 MW wind farm in Egypt.

The project which will be constructed at a cost of US$500 million will contribute to further diversification of Egypt’s energy sector and make it more sustainable and carbon free.

Last month, the construction of Egypt’s largest waste management project achieved another milestone when the project proprietors chose Dutch based company Gakon to supply the equipment for the installation of greenhouses dedicated to drying the sludge of the future wastewater treatment plant.

Upon completion, US$739 million project will have a capacity of handling 5 million m3 per day of waste water.

The waste water plant will also support the restoration of 138,600 hectares of plantation east of the Suez Canal, through the reuse of treated wastewater for irrigation.

Mohamed Maait, the Egyptian Minister of Finance says that the green bonds launched on the world markets will also increase the confidence of foreign investors in the Egyptian economy.

He further notes that the bonds will support Egypt’s current and future growth, attract investors interested in environmental and financial returns, and improve Egypt’s environmental rating.

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