Egypt has become the first nation in the Middle East and Africa to issue sustainable international “panda bonds” on the Chinese financial market, allocated to finance projects worth about 3.5 billion Chinese yuan – the equivalent of US$ 500 million.
Egyptian Finance Minister Mohamed Maait announced that the ministry was able to obtain low pricing for bonds with a return of 3.5 percent annually for a period of three years, a better deal compared to the interest rates of the international US dollar bonds in light of global economic challenges.
The minister said in a Monday statement that this type of issuance is characterized by being backed by a credit guarantee provided by international development banks such as the Asian Infrastructure Investment Bank and the African Development Bank, which have a high credit rating.
In cooperation with credit guarantee providers, the ministry said it completed all preparatory procedures for issuing panda bonds in the Chinese financial market – considered the second largest global financial market in terms of size.
It added that this achieves one of the most important goals of its strategy to diversify sources of financing and enter new global markets.
Maait added that this issuance succeeded in attracting many Chinese investors, and was distinguished by the implementation of sustainable financing policies in Asia and Africa.