AIIB could back our second sovereign green bond sale: The government is reportedly in talks with the Asian Infrastructure Investment Bank (AIIB) to guarantee an upcoming green bond issuance, AIIB President and Chairman Jin Liqun is quoted as telling Bloombergon the sidelines of the Summit for a New Global Financing Pact in Paris over the weekend. Jin did not disclose any information about the size, timeline, or currency denomination of the bond sale or what portion would potentially be guaranteed by AIIB.

Accessibility + affordability: The guarantee would give Egypt easier access to capital markets at low borrowing costs, Jin is quoted as saying, adding that it would also allow us to access finance for wind farms and other climate projects. He said that this would be the first time AIIB acts as a guarantor for this kind of bond.

REMEMBER- We have a planned green panda bond sale coming up: The African Development Bank agreed last month to provide ins. coverage for USD 345 mn of our planned maiden USD 500 mn CNY-denominated bond issuance. The green panda bonds, which will be used for sustainable development projects, could go to market early next fiscal year, a Finance Ministry official previously said. It is unclear whether this is the same green bond issuance that AIIB could guarantee.

More green bond talk: Finance Minister Mohamed Maait said in September that the government is looking at the possibility of issuing a green eurobond soon, depending on market conditions. The Finance Ministry earlier in 2022 signaled that it islooking to take a USD 750 mn green bond issuance to market, matching the 2020 issuance that saw Egypt debut sovereign green bonds in the MENA region. Sovereign green bond sales are part of the government’s debt diversification strategy, which entails a shift towards longer-term debt.

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