The duration of those bonds is 19 years.
As per the Egyptian Ministry of Finance’s announcement late in March regarding issuing Samurai bonds, Egypt would thus be a leader in the Middle East in this field, the Cabinet said on Wednesday.
These bonds are issued to obtain financing for sustainable projects related to the environment and climate.
IFC added in a statement that this investment is to help unlock finance for climate-smart projects, reduce greenhouse gas emissions, and support the country's transition to a greener economy.
In a statement on Wednesday, the authority said the proceeds of the green bonds will be used in funding environmental projects, including clean energy ventures.
Minister Rania Al Mashat states that Egypt’s mega infrastructure projects and issuance of the first green bonds in the region “contributing to a new chapter in Egypt’s economic progress”
The revenues of the bond issuance will be directed in eco-friendly investments such as using solar and wind power in producing electricity.
“We may launch a joint civil engineering project over there,” Belarus President Aleksandr Lukashenko said.
The green bonds aim to enhance the state’s vision towards strengthening investments in climate and environmental projects.
Kouchouk said Egypt is also working on reducing its debts and budget deficit.
Ma’it said that the ministry is studying developing three new types of bonds for investors in the next 2 years to diversify the state’s sources to control the deficit bill.
The issuances were planned to take place in the current fiscal year but were postponed to give the government time to comply with Euroclear regulatory requirements.
Omran said the authority will also work on preparing the legal framework for new financial tools, such as the Green Bonds.
A look at why Egypt is in need of green bonds and just how to get the market