Cairo, Oct. 16 (BNA): Egypt issued the first sustainable Panda bonds in the Middle East and North Africa at ¥3.5 billion ($500 million) with a yield of 3.5% over three years, according to a statement by the Ministry of Finance.

The recent bond issuance is guaranteed by international banks including the Asian Infrastructure Investment Bank (AIIB) and the African Development Bank (AFDB), said Minister of Finance Mohamed Maait.

He noted that the issuance has been receiving high demand from Chinese investors, according to the MENA news agency.

"This issuance serves as a new portal aiming to increase bilateral cooperation, share experiences, and facilitate opportunities to achieve sustainable development goals (SDGs) and Egypt Vision 2030," Maait commented.

Egypt aims to reduce carbon emissions and promote using renewable and alternative energy sources, including green hydrogen, as part of its National Climate Change Strategy 2050.

Earlier this week, Maait announced that Egypt has a financial gap ranging between $6 and $8 billion for FY2023/2024, which can be narrowed by issuing Samurai and Panda bonds.

With a total external debt of $165.3 billion, Egypt has to pay $71.6 billion in debt service in the coming three years, including $29.23 billion in 2024.

Egypt’s foreign assets deficit amounted to nearly $25.92 billion in August. The country seeks to collect $191 billion in annual US dollar revenues by 2026.

H.F.