Minister of Finance: Egypt successfully issued sustainable Panda bonds in the Chinese market worth $500 mn

Egypt, as the first country in the Middle East and Africa, managed to issue sustainable international Panda bonds in the Chinese financial market, dedicated to financing projects worth approximately 3.5 billion Chinese yuan, equivalent to $500 mn.

Mohamed Maait, the Minister of Finance, confirmed that the ministry secured a low pricing for the bonds with an annual yield of 3.5% for a period of 3 years, making it more favorable compared to the interest rates of international dollar bonds, amid global economic challenges.

He explained that this type of issuance is supported by a credit guarantee provided by global development banks: Asian Infrastructure Investment Bank and the African Development Bank, both having high credit ratings.

The ministry, in collaboration with the credit guarantee providers, successfully completed all the preparatory procedures for issuing Panda bonds in the Chinese financial market, the second largest global financial market in terms of size. This achievement fulfills one of the key objectives of diversifying sources of funding and entering new global markets.

Maait added that this issuance attracted many Chinese investors, characterized by the implementation of sustainable financing policies in Asia and Africa, leading to common goals and unified concepts regarding innovative and sustainable financing. This aligns with the announced Egyptian sovereign sustainable financing framework during the Climate Finance Day hosted by Egypt at COP 27.

He mentioned that this issuance serves as a new gateway aimed at increasing cooperation between the two countries, exchanging experiences, and opening avenues for collaboration to achieve sustainable development goals.

It also extends the reach of green and sustainable financing, encouraging investment as one of the fundamental pillars in line with Egypt's 2023 Sustainable Development Goals strategy.