Egypt receives $345 million from the AFDB to improve its access to Chinese bonds

The African Development Bank Group's Board of Directors has granted Egypt a Partial Credit Guarantee in the sum of $345 million to boost Egypt's access to the Panda bond market and finance green and social initiatives.Thanks to the Bank Group's partial credit guarantee, Egypt will be able to finance the equivalent of $500 million through the issuance of Panda Bonds, which are Chinese yuan-denominated bonds issued by international borrowers. Profits from the bonds will be used to support efforts in clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, funding for MSMEs, and critical health services, among other things. Certain topics are prioritized under Egypt's Sovereign Sustainable Financing Framework (SSFF).These instruments include sustainable, social, blue, Sukuk, and other debt instruments in addition to green bond issuances. According to worldwide best practices, the framework lays out protocols and guidelines for resource usage, project selection, monitoring, and assessment. The initiative will enhance Egypt's social and environmentally conscious goals while fostering inclusive growth. The sectors included under the Sovereign Sustainable Financing Framework closely match the bank's High-5 operating objectives as well as its country strategy for Egypt.