Egypt plans to issue bonds in currencies of the members of the BRICS-founded New Development Bank (NDB). According to Egypt’s Minister of Finance Mohamed Maait, this will include green, blue, social, and sustainable bonds.
Green, blue, and social bonds
Maait said in a press statement on Sunday that Egypt aims to issue green, blue, social, and sustainable bonds that meet the ambitions of Egypt’s Vision 2030. The bonds will add new projects with a social dimension to Egypt’s sustainable portfolio.
At the beginning of this year, Egypt officially joined BRICS which includes: Brazil, Russia, India, China, South Africa, Ethiopia, Iran, Saudi Arabia, and the UAE. The group seeks to enhance trade in local currencies among member states.
Maait, who is also the governor of the NDB, explained during his meeting with the bank’s Vice President, Vladimir Kazbekov, that his country seeks to build a strong and sustainable strategic partnership with NDB. Hence, it aims to attract more development investment flows to support its efforts in building comprehensive sustainable development that improves the lives of citizens.
Cooperation with NDB
Maait added that there are promising prospects for cooperation with NDB in clean energy projects, transportation, and social and environmental protection. Moreover, Egypt seeks to collaborate with the bank in information infrastructure and water and sanitation, especially in light of its enormous financing capabilities and advanced international expertise.
The minister also highlighted that Egypt looks forward to holding joint and sustainable discussions on strategies to enhance economic development. This also falls in line with NDB’s plans to expand its activities in Egypt. Moreover, NDB will explore more promising investment opportunities and provide soft development financing to the private sector. Thus, this collaboration will set Egypt on the road to recovery and sustainable economic growth, especially in light of it adopting measures that support the business climate by providing tax, customs, and investment incentives.
Read: Urban inflation in Egypt declines for third consecutive month
International debt markets
In the same context, Egypt continues to move towards international debt markets and is currently considering offering bonds in Gulf currencies. That is at a time when the high cost of financing is one of the government’s most prominent challenges after Egypt’s sovereign debt credit rating was lowered.
Maait recently explained in a statement that Egypt is considering offering bonds in Gulf currencies during the coming period. However, this requires coordination with advisors and lawyers, and the matter is not easy.
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