The International Finance Corporation, IFC, a member of the World Bank, will invest $100 million in the first private sector green bond in Egypt, to help fund climate-smart projects, alleviate greenhouse gas emissions, and support Egypt’s shift to a greener economy, the institution said in a statement.
The bond, the first by the private sector, IFC said, is issued by Egypt’s Commercial International Bank (CIB), the country’s largest private bank.
“The IFC and CIB partnership is proof of the global eagerness for more private-led green investments. Green bonds are the key for a purpose-driven economy, that pushes towards sustainable projects and encourages investors into not only thinking but as well acting green,” said Rania A. Al-Mashat, Egypt’s Minister of International Cooperation.
“Addressing climate change is a priority for IFC in Egypt and, more broadly, across the Middle East and North Africa,” said Sérgio Pimenta, IFC Vice President for the Middle East and Africa.
“With this landmark transaction, we aim to encourage more private sector investment in long-term climate-smart projects, paving the way for job creation, sustainable growth, and a more resilient and green recovery from the COVID-19 pandemic.”
IFC will also, as part of the cooperation with CIB, provide advisory support to the bank, helping it to develop a pipeline of industrial energy efficient and green building transactions.
The institution will equally provide technical assistance to developers, help them adopt low-cost and eco-friendly building solutions, and to participate in IFC’s EDGE certification program for green buildings.
“The project will leverage funding from the UK-IFC Market Accelerator for Green Construction, which provides incentives to developers who construct certified green buildings,” the statement added.