Egypt signs facilities worth $2 bln to finance green projects

Egypt signed facilities worth two billion dollars to meet financial needs for various environmentally friendly projects.

The financing facilities were signed on for a term that complies with the principles of environmental, social and corporate governance (ESG) and other facilities that comply with Islamic Sharia, the Ministry of Finance said in a statement.

A tranche of the ESG financing will be used to finance green projects while a tranche of Islamic finance will finance the general budget, according to the statement.

“These are government credit facilities that are not green bonds or sukuk,” the CEO of strategies and clients at Al Dhabi Capital Limited Mohamed Ali Yassin told CNN Arabic.

He explained that there is an attempt to open credit or borrow lines by issuing bonds or sukuk as soon as possible before the end of the year, he said.

“What is unique about it is that it is ESG and Sharia compliant, an investment tool that is required by a certain type of investors under credit lines and not under a bond program…so in terms of time it is a little shorter than bonds,” he added.

“Green bonds, ESG compliant lines of credit and sukuk are financing solutions. Egypt’s commitment to sustainability is represented in rationalizing the use of water and investing in renewable energy.”

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