Egypt’s Panda bonds witness  interest from major Chinese institutions

Egypt’s Panda bonds witness  interest from major Chinese institutions

The three-year Panda bonds, issued by Egypt, have attracted a large number of major Chinese institutions, as the subscription was open only to Chinese entities, according to the Ministry of finance’s senior official.

The issuance was the first panda bond in Africa and will be used to finance sustainable development projects.

The Ministry of Finance issued sustainable Panda international bonds on the Chinese financial market worth Chinese Yaun 3.5 billion, equivalent to US$500 million, with an annual yield of 3.5% for three years, Ahmed Kouchouk, Deputy Minister of Finance for Financial Policies, said.

The issuance serves as a benchmark for future issues in the Chinese markets.

He added that the joint guarantee from the Asian Infrastructure Bank and the African Development Bank helped in securing a good annual return of 3.51%. 

The issuance will be invested in developing sectors of eco-friendly agriculture, clean transportation, water sustainability management, and waste treatment, infrastructure projects, digital infrastructure, and renewable energy.

The Bank of China said, on its website, that the guarantee covers both the principal and interest. 

The Minister of Finance revealed in previous local media reports that the Asian Bank’s guarantee would exceed $200 million, in addition to the $345m guarantee by the African Development Bank.

The Bank of China and HSBC acted as financial advisors for the issuance, according to the statement.

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