CAIRO: Egyptian Commercial International Bank (CIB) obtained preliminary approval from the Financial Supervisory Authority, to be the first private bank in the country to issue green bonds, with a value of $100 million for a period of five years.
Egypt’s largest private bank will use no more than 20 percent of the proceeds on the construction of an environmentally friendly building, while the rest will finance its green loan portfolio.
The International Finance Corporation (IFC) is expected to guarantee the full value of the issue.
“We have been working closely with Egyptian regulators to develop green bonds and refine their legislations, ” IFC’s Country Manager for Egypt, Yemen and Libya Walid Labadi told Asharq.
“Having this tool gives investors options to put their money in assets and investments that promote green principles,” he said. “This will attract more investments to Egypt and give it an opportunity to develop sustainable developments in the country.”
CIB Egypt’s green loans will support projects including green buildings, energy efficiency, renewable energy, water and sanitation management, and environmentally friendly transportation.
CIB-Egypt intends to publish the framework for the green bond this week, outlining the determinants of the use of returns, among other details.