Egypt's first private sector green bond, it is set to help CIB increase lending to businesses willing to invest in eco-friendly initiatives and projects
The Commercial International Bank (CIB) will be receiving a $100 million investment by World Bank member the International Finance Corporation (IFC) for its upcoming green bond.
Egypt's first private sector green bond, the bond is set to help CIB increase lending to businesses that are willing to invest in eco-friendly initiatives and projects, including green buildings, and renewable energy and energy efficiency.
"With this landmark transaction, we aim to encourage more private sector investment in long-term climate-smart projects, paving the way for job creation, sustainable growth, and a more resilient and green recovery from the COVID-19 pandemic,” states Sérgio Pimenta, IFC’s Vice President for Africa.
In a statement, the IFC wrote that the bond is an important milestone in a multi-year effort introduced by the Egyptian government, Egypt's private sector and IFC in an effort to boost Egypt's capital market for green finance in the country and to help close infrastructure financing gaps.
"We are building on our multi-year strong partnership with IFC to expand our funding options and introduce a new asset class to the Egyptian capital market,” said Hussein Abaza, CIB’s CEO and managing director.
"In 2020, the government of Egypt launched its first sovereign green bond offering, that was five times oversubscribed. At the Ministry of International Cooperation, we aim to capitalize on this success by curating impactful partnerships to push towards the green recovery," said Egypt’s Minister of International Cooperation Rania Al-Mashat.
She also highlighted IFC and CIB’s partnership as evidence of the world’s eagerness for more private-led green investments, with green bonds essential for a purpose-driven economy moving towards sustainable projects.
IFC is one of the earliest issuers of green bonds, launching its first in 2010 to help kick start the market and unlock investment for private sector projects that support renewable energy and energy efficiency.
