The African Development Bank has approved a $345 million credit guarantee for Egypt’s first issuance of Panda bonds, denominated in Chinese yuan, worth a total of $500 million.
According to the bank’s statement, the Panda bonds issued will be green bonds, which means they will be dedicated to finance green projects such as renewable energy, energy efficiency and water treatment.
Mohamed El Azizi, Director General of the African Development Bank in North Africa, said that the bank’s approval of the partial credit guarantee will contribute to strengthening Egypt’s credit rating and allow Egypt to secure financing from international investors at competitive prices and terms.
The bank did not specify when the Ministry of Finance will issue these bonds, but according to an official in the Ministry of Finance, the offering will be at the beginning of the 2023/2024 fiscal year.
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