Arab African International Bank (AAIB) has launched Egypt’s first-ever US$500 million sustainability bond, aiming to boost the country’s green transition and support micro, small, and medium-sized enterprises (MSMEs). The bond, the largest of its kind issued by a private bank in Africa, is backed by investments from the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and British International Investment (BII). Of the bond’s total proceeds, 75% will fund green projects, including energy-efficient industries, small renewable energy projects, and eco-friendly buildings. The remaining 25% will go towards supporting social initiatives, particularly inclusive finance and MSMEs, to help drive economic growth in Egypt. The new sustainability bond will play a key role in reaching this target by providing financing for businesses and projects that reduce emissions or protect the environment.

Source: The North Africa Journal November 25, 2024 19:01 UTC