New Panda bond issuance soon, finance minister



Thu, 12 Oct 2023 - 12:23 GMT


Thu, 12 Oct 2023 - 12:23 GMT

Cairo – October 12, 2023: Egypt expects to launch a new Panda bond issuance soon, according to Minister of Finance Mohamed Maait. A cabinet statement quoted the minister during the meeting of the Alliance of Finance Ministers for Climate Action at the annual International Monetary Fund and World Bank meetings in Morrocco.

Maait revealed that the new group of Panda bonds will be worth $500 million, but did not disclose further details on a set date.

He emphasized that the bond issuance would aid the country’s strategy and efforts towards sustainable development through transportation projects, renewable energy, sustainable management of water and sanitation, and other eco-friendly fields.

Egypt seeks to boost green investments to 50 percent of the government’s investments for the next fiscal year. The finance minister also revealed that Egypt’s total green investments increased from 15 percent in FY2019/2020 to 30 percent of all investments in FY2020/2021.

Maait added that Egypt is looking to increase the supply of electricity generated from renewable sources to 42 percent by 2035.

Regarding the government’s recently proposed new initiatives supporting Egypt’s transition to a green economy, the finance minister highlighted several initiatives including tax breaks ranging between 33-55 percent to stimulate green hydrogen production, and subsidizing 35 percent of the cost of producing each electric car locally to attract more eco-friendly private investments.

Maait pointed out that the newly launched Sustainable Debt Alliance initiative will work to boost eco-friendly investments and reduce the burden of debt on developing countries, contributing to a financial landscape that promotes clean investments.

The minister stressed that the current challenging financial landscape has had a significant impact on emerging markets, delaying climate action and sustainable development. Maait underscored the importance of a new set of consultations centered on making the debt crisis part of the solution must be launched to promote additional investments towards green growth and address environmental challenges.

Egypt is currently working towards obtaining new external financing ranging between $1.5 and $2 billion, Maait added, which would include $1 billion through the offering of Samurai and Panda bonds before the end of the year.



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