AfDB loans partial credit worth $345 million for green, social projects
The African Development Bank Group, AfDB, has greenlighted a partial credit guarantee of $345 million to Egypt for the financing of green and social projects, reports say.
Egypt expects to use the credit guarantee to raise the equivalent of $500 million in the Chinese Yuan denominated Panda Bond market, issued by foreign borrowers, Egypt Today reports.
Bond proceeds will be used for clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, MSMEs financing, and essential health services initiatives, among others.
The sectors, local media further notes, are prioritized under Egypt’s Sovereign Sustainable Financing Framework (SSFF). “Egypt will be the first African country to issue a Panda bond and, as the African Development Bank, it is our pleasure to provide support to Egypt to enable them to access the market. This partial credit guarantee will enable Egypt to enhance its credit rating and catalyze financing from international investors on competitive terms and pricing”, Mohamed El Azizi, African Development Bank Director General for North Africa, said.
The group is currently holding its 58th Annual Meetings of the Board of Governors and the 49th Meetings of the Board of Governors of the African Development Fund in the Red Sea resort of of Sharm El-Sheikh.