Arab Finance: Representatives of African countries hailed Egypt’s experience in issuing green bonds, especially in the Chinese capital market, amid using the partial credit guarantee (PCG) tool from the African Development Bank (AFD) and benefiting from the bank’s credit rating of AAA, as stated in a press release sent to Arab Finance on May 26th.

They also stressed the importance of studying the Egyptian experience in issuing panda bonds to be replicated by other African states aiming to diversify their funding sources amid the current global economic situation.

This came during the AfDB’s Annual Meetings of the Board of Governors in Sharm El Sheikh which were concluded on May 26th.

The meetings also greenlit initiation of the amendment to the African Development Fund’s (ADF) agreement to enable it to mobilize resources from the global financial markets and relending them to low-income African countries via concessional loans.

Prior to the annual meetings, Egypt was able to obtain AfDB’s approval to get a partial credit guarantee of $345 million to support the country’s plan to mobilize sustainable financing from the Chinese financial markets via the first issuance of panda bonds in Chinese yuan.

The bond proceeds will be used to finance green and sustainable projects under the umbrella of Egypt's Sovereign Sustainable Financing Framework.


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