{"id":606902,"date":"2023-09-24T00:00:00","date_gmt":"2023-09-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/24\/aiib-has-a-pipeline-north-of-usd-1-bn-for-egypt-including-backing-our-maiden-panda-bond-kouchouk\/"},"modified":"2023-09-24T00:00:00","modified_gmt":"2023-09-24T00:00:00","slug":"aiib-has-a-pipeline-north-of-usd-1-bn-for-egypt-including-backing-our-maiden-panda-bond-kouchouk","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/24\/aiib-has-a-pipeline-north-of-usd-1-bn-for-egypt-including-backing-our-maiden-panda-bond-kouchouk\/","title":{"rendered":"AIIB has a pipeline north of USD 1 bn for Egypt, including backing our maiden panda bond \u2013Kouchouk"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> What\u2019s the AIIB and why does it matter to us? <\/strong>The Asian International Infrastructure Bank (AIIB) is holding its <a target=\"_blank\" href=\"https:\/\/www.aiib.org\/en\/news-events\/events\/2023\/2023-annual-meeting-of-the-aiib-board-of-governors.html#:~:text=This%20year's%20Annual%20Meeting%20will,International%20Congress%20Center%20(SHICC).\" style=\"\" rel=\"noopener\">annual meeting in Sharm El-Sheikh on tomorrow and Tuesday (25-26 September)<\/a>. The Beijing-backed lender has built a wide footprint, been granted permanent observer status at the UN \u2014 and ruffled the feathers of folks who object to China\u2019s effort to project influence across emerging markets. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> We sat down with Vice Minister of Finance Ahmed Kouchouk <\/strong> (<a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/ahmed-kouchouk-51aaa0b\/\" style=\"\" rel=\"noopener\">LinkedIn<\/a>) totalk about AIIB, its role in promoting investment, and the importance of engaging with the private sector. Also on our list of questions was the lender\u2019s current and upcoming projects in Egypt and its involvement in our <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/67dc1e03-38c4-429c-b223-cb07288defa2\" style=\"\" rel=\"noopener\">maiden CNY-denominated panda bond issuance<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Why\u2019s Kouchouk \u2014 a very familiar face to Enterprise readers \u2014 talking about the AIIB? <\/strong>The vice minister for fiscal policies and institutional reform at the Finance Ministry is also AIIB\u2019s <a target=\"_blank\" href=\"https:\/\/www.aiib.org\/en\/about-aiib\/governance\/board-directors\/board-members\/directors\/Ahmed-KOUCHOUK.html\" style=\"\" rel=\"noopener\">director for constituency six<\/a>, which includes Egypt, Algeria, Argentina, Brazil, Morocco, Sudan, and Tunisia, among 12 other countries. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> ICYMI- <\/strong> AIIB officials virtually joined Finance Minister Mohamed Maait, Kouchouk, and a number of private sector players at the Finance Ministry\u2019s headquarters in the New Administrative Capital <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/87ebabaa-aeb8-4016-aca0-be1725621677\" style=\"\" rel=\"noopener\">earlier this month<\/a> to discuss how the Beijing-backed multilateral lender can benefit private-sector players ahead of the bank\u2019s annual meeting.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Edited excerpts of our conversation: <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> ENTERPRISE: How significant is it that Egypt is hosting the upcoming AIIB conference in Sharm El Sheikh? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AHMED KOUCHOUK: <\/strong> Hosting the AIIB\u2019s annual meetings this week underscores Egypt's significance regionally and globally as a founding AIIB member. It presents a prime opportunity to showcase Egypt's potential to investors and promote its role as a major logistics hub. The seminars and sessions scheduled for the annual meetings are expected to further enhance the private sector's role and enable it to leverage AIIB's expertise in mobilizing financial resources for investments. The event is expected to draw around 2k participants, including members and heads of state delegations, finance ministers, heads of central banks, observers, AIIB members, dignitaries, international public figures, invited guests, and members of the media.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: Can you tell us about any specific projects the AIIB has for Egypt in the pipeline? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>AIIB's current investment portfolio in Egypt amounts to USD 1.3 bn. The most important part of the portfolio is the Benban Solar Park project to produce clean and renewable energy production, which is led by the private sector. Anticipated investments in the pipeline total just over USD 1 bn, including a USD 500 mn panda bond issuance partially guaranteed by AIIB, a USD 100 mn public-private partnership project for the development of <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5a969191-b464-4752-a16c-fb7eeb90c798\" style=\"\" rel=\"noopener\">D<\/a> <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5a969191-b464-4752-a16c-fb7eeb90c798\" style=\"\" rel=\"noopener\">amietta P<\/a> <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5a969191-b464-4752-a16c-fb7eeb90c798\" style=\"\" rel=\"noopener\">ort<\/a>, and USD 150 mn in non-sovereign financing in collaboration with Banque Misr for various sustainable infrastructure projects. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: What outcomes are you hoping to come out of the meetings? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>The most ideal outcomes revolve around the opportunities and partnerships that Egypt's private sector can establish with the lender. We\u2019re also hoping that there will be an exchange of ideas about how to facilitate financing to the private sector, how best to tackle climate issues in terms of mitigation and using resources, and ideas to boost sustainability and green infrastructure in member countries. Additionally, we want to highlight the importance of cooperation between Africa and Asia. Both continents have immense potential and already have significant trade and investment ties. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: Egypt is no stranger to international development banks. What can the AIIB do for Egypt that other development finance institutions (DFIs) can\u2019t? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>AIIB's unique mandate focuses on addressing the significant infrastructure financing gap that other DFIs have not covered. This makes AIIB distinct in its approach. AIIB's core strategy includes private capital mobilization, which aligns well with Egypt's 2030 vision. Egypt's status as the first non-regional country to join AIIB and its substantial shareholding in the lender, with a subscription of USD 650 mn, adds another layer of significance to its relationship with the bank.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E- How different are the internal workings and decision making processes of the AIIB (particularly concerning Egypt) from other DFIs? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>The AIIB operates with a comprehensive and inclusive decision-making process, involving all categories of economies, from advanced to low-income. What sets AIIB apart is that every member has a voice and influence in shaping the bank's activities, financing, vision, and strategy. Egypt is considered a regional country in terms of establishment and financing within the bank, and a non-regional country in location. Importantly, AIIB's unique attribute lies in providing emerging markets and developing countries with a larger voting power than traditional DFIs. This fosters a distinct dynamic that requires consensus-building and genuine discussions on various topics, even when viewpoints vary.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: Tell us more about <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d3b9385c-b110-4e8d-a934-c81be97a6f9f\" style=\"\" rel=\"noopener\">th<\/a><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d3b9385c-b110-4e8d-a934-c81be97a6f9f\" style=\"\" rel=\"noopener\">e bank\u2019s involvem<\/a><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d3b9385c-b110-4e8d-a934-c81be97a6f9f\" style=\"\" rel=\"noopener\">ent<\/a><\/strong><strong> in our upcoming green bond issuance. <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>The bank is co-guaranteeing our maiden panda bond issuance along with the African Development Bank (AfDB), which is expected before year-end under the lender\u2019s sustainable transportation and digital infrastructure program. The issuance is expected to be covered by both DFIs, with AIIB backing the issuance by USD 200 mn and AfDB around USD 345 mn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: Has the AIIB participated in previous green bond issuances? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>The lender has issued the equivalent of USD 33.77 bn in sustainable development bonds in 17 currencies, including in EUR, CHF, and CNY, since its inaugural issuance in 2019. This showcases its dedication and contribution to narrowing the vast gap between capital markets and sustainable infrastructure development.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: What do Egyptian businesses have to gain from the country\u2019s ties to the AIIB, considering that the bank\u2019s focus (so far) has been around large infrastructure projects? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>Although the bank has a substantial portfolio in large infrastructure projects, it has also been active in financing SMEs in the infrastructure space, including investing in closed-end private equity funds specializing in financing different social infrastructure projects. It has also financed smaller sized projects in several sectors, particularly in energy. One very important arrangement for the AIIB is the Damietta Port upgrade, which will be the first PPP project financed by AIIB. This project will ensure enhanced and increased private sector participation and capital mobilization in an important sector of the economy.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> E: Is it easier for Egypt to obtain funding from the AIIB than other multilateral institutions? <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> AK: <\/strong>As one of the lender\u2019s first founding members and the largest shareholder from Africa, Egypt is treated as a regional country when it comes to financing availability and better terms. This allows Egypt to be considered for a wider portfolio of projects and activities in several sustainable sectors such as energy, transportation, and ICT, to name a few.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We spoke with Kouchouk, who also leads constituency six at the AIIB, ahead of the multilateral lender\u2019s annual meeting tomorrow and Tuesday in Sharm El Sheikh<\/p>\n","protected":false},"author":1,"featured_media":606903,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7279],"tags":[782,2399,101,72,276,2073],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-606902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spotlight","tag-ahmed-kouchouk","tag-asian-infrastructure-investment-bank","tag-development-finance","tag-enterpriseam","tag-finance-ministry","tag-spotlight","wpautop","entry"],"acf":{"mongo_id":"d6459246-e267-4100-8f16-9fbcf01109ba","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/9\/1396.jpg","photo_position":"above","homepage_title":"","full_issue_title":"AIIB has a pipeline north of USD 1 bn for Egypt, including backing our maiden panda bond \u2013Kouchouk","related_issue":[606893],"teaser":"We spoke with Kouchouk, who also leads constituency six at the AIIB, ahead of the multilateral lender\u2019s annual meeting tomorrow and Tuesday in Sharm El Sheikh","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/9\/.67424aa5-13aa-4b91-9d9b-390298f7524f.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>AIIB has a pipeline north of USD 1 bn for Egypt, including backing our maiden panda bond \u2013Kouchouk - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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