Arab Finance: The Arab African International Bank issued sustainability bonds worth $500 million, which were subscribed by the International Finance Corporation, the European Bank for Reconstruction and Development, and the British International Investment Corporation, according to For the statement Issued on November 24.
Sustainability bonds will help achieve the government’s goal of reducing greenhouse gas emissions by 37% by 2030 “by making financing available to companies and projects that work to reduce thermal emissions or preserve the environment, and will also help meet the growing financing needs of micro, small and medium enterprises.” “, according to Statement.
“These are the first sustainability bonds in the Egyptian market, and the largest bonds issued by a private bank in Africa,” according to the statement. The bonds have a maturity of five years, according to a note issued by the International Finance Corporation.
The International Finance Corporation subscribed $300 million to the bond issue, while the European Bank for Reconstruction and Development and the British International Investment Corporation invested about $100 million each. “75% of the bond proceeds were allocated to green financing, such as energy efficiency programs in the industrial sector, small-scale renewable energy projects, and environmentally friendly buildings, while 25% of the proceeds were allocated to social development efforts, including comprehensive financing and medium, small and micro enterprises,” According to the statement.
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