Multilateral and bilateral development partners have offered development financings to the private sector worth $1.9 billion during the first half (H1) of 2021,according to Egypt’s Minister of International Cooperation Rania El-Mashat
She added that $300 million of these finances were dedicated for the sectors of environment and energy.
The minister added that the International Finance Corporation (IFC) is Egypt’s partner in funding and developing the private sector, offering $1.27 billion for developing various sectors, such as infrastructure, education, health, and renewable energy, according to a statement on Wednesday.
At the signing ceremony of the issuance of the $100 million first green bonds in the MENA region to finance the private sector, El-Mashat said that this issuance is the first of its kind private-led investment that contributes to boosting climate finance, pushing towards green transition.
The minister emphasised the importance of this issuance, marking the first private sector-led green bond issuance, which comes amidst the rapidly growing global ecosystem, estimated at more than $1 trillion. She noted that the investment market plans to achieve sustainable development to provide the necessary capital in order to achieve the UN’s 2030 sustainable development goals (SDGs).
According to the latest data, sustainable bonds which include social and green bonds, have increased by more than 80% compared to 2019.
El-Mashat stated that signing the green bonds by the Commercial International Bank-Egypt (CIB) and the IFC, emphasises the importance of the private sector’s role in pushing towards the green recovery, building on the Egyptian government’s progress in drawing global investors’ attention to the local market, supporting the transition towards a greener economy.
The minister further mentioned that the world has gone through unprecedented challenges due to the COVID-19 pandemic, which had several negative impacts on the global economy, however, one of the silver linings of this is that it has led all stakeholders to reconsider their priorities towards an integrated, inclusive, and sustainable green recovery.
She added that the pandemic has shown the private sector’s vital role in achieving an inclusive growth that pushes forward the green recovery, which comes within the framework of the environmental, social and governance (ESG) principles.
El-Mashat noted that issuing the green bonds comes within Egypt’s strategy to enhance financial sustainability and to support green investments, as Egypt also sold $750 million in green bonds in September 2020 in what was the region’s first sovereign offering of climate-friendly securities.
The issuance was almost five times oversubscribed, attracting some $3.7 billion worth of orders for the bonds, pointing to growing appetites for sustainable securities worldwide.
The ongoing cooperation portfolio between the Ministry of International Cooperation and the IFC includes 98 projects across various sectors that is worth $1.27 billion, focusing on the development of private entities in agriculture, finance, infrastructure, renewable energy, industry, and technology. Egypt is also the largest country of operation for IFC in the MENA region with a total of 197 projects.
