EGYPT – The government of Egypt launched has launched its first green bond offering on the London Stock Exchange (LSE) which is valued at US$750 million and has a 5-year term.
The offering by the North African county is the largest in the Middle East and North Africa region, and the first of its kind on the London Stock Exchange.
According to Egypt’s Finance Minister Hussein Maait, the green bond issue witnessed a high turnout from investors, as purchase orders exceeded the volume of the announced issue “$500 million” by 7.4 times.
The bond according to the finance minister attracted a new base of Investors in Europe, the United States of America, East Asia and the Middle East.
During the launch, Interim executive director of the London Stock Exchange, Denzel Jenkins, expressed his support for this step, which contributes to strengthening the common aspirations of Egypt and the United Kingdom.
Jenkins noted that the green bond was another milestone in the collaboration of Egypt and the United Kingdom for a green recovery from the emerging coronavirus (COVID-19).
He further noted that the green bond in a way demonstrates Egypt’s commitment to sustainable development and its role as an innovative leader in the region.
British Middle East Minister James on his part welcomed the decision to list the bonds on the London Stock Exchange, which according to him, contributes to deepening the sustainable partnership between the UK and Egypt in the face of climate change.
“The listing of the first green sovereign bonds in the Middle East on the London Stock Exchange represents a historic moment between the United Kingdom and the Middle East,” Cleverley commented.
“we need ambitious and forward-thinking measures like this to protect the environment and ensure a green and resilient recovery from novel coronavirus.”
Jenkins noted, that the success of this inaugural deal highlights Egypt’s commitment to building a sustainable future and paves the way for many issuers in the region to follow this approach.
For his part, Mohammed Maait, Egypt’s finance minister expressed his country’s pleasure to join the group of sovereign green bond issuers that play a leading role in green development.
Maait added that the proceeds of the “green bond” will be used to finance expenditures related to environmentally friendly green projects.
The funds from the green bond will also be used to achieve Egypt’s sustainable development plan in the areas of clean transportation, renewable energy, and adapting to climate change.
Other areas that will be financed by the projects include efforts to reduce pollution, raising energy efficiency, and promoting sustainable management of water and sanitation
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE
