Egypt launches $2bln sustainable term loan, Islamic financing facility

The ESG tranche will be used for green projects

  
An employee counts Egyptian pounds in a foreign exchange office in central Cairo, Egypt, November 3, 2016. Image used for illustrative purpose.

An employee counts Egyptian pounds in a foreign exchange office in central Cairo, Egypt, November 3, 2016. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

Egypt’s finance ministry has launched its first $2 billion syndicated sustainable term loan and Islamic term financing facility with a three-year tenor following the success of its $750 million green bond sale last year.

The ESG (Environmental, Social and Governance) tranche of the facility will be used to fund green projects as per Egypt’s Green Financing Framework that was implemented in September 2020. The Islamic tranche would be utilized towards budgetary requirements, the finance ministry said in a statement on Thursday.

Emirates NBD Capital Ltd. and First Abu Dhabi Bank PJSC are mandated as the joint coordinators and lead arrangers on the deal.

In September 2020, Egypt became the first in the Middle East and North Africa to sell green bonds when it issued $750 million in five-year bonds that listed on the London Stock Exchange.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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