Egypt Becomes First African Country to Issue Panda Bo

In October 2023, Egypt successfully issued its Panda Bond to the tune of RMB 3.5 billion ($479M), making it the first African country to tap into the Chinese bond market. The proceeds will go toward meeting inclusive and sustainable development under Egypt’s Sovereign Sustainable Financing Framework (SSFF) which was unveiled during #COP27 in Egypt in 2022.

“Egypt is the first African sovereign to issue Panda Sustainable Bonds in the Chinese Financial Markets. This is a historical move not just for the country but for the entire continent. We have paved the way for alternate, sustainable financing for our African neighbors and have deepened the partnership with our Chinese counterparts. It’s more than just a financing source; it’s a testimony of how important our economic and financial ties are with the Government of China.”

Egypt Finance Minister Mohamed Mait

The bond was guaranteed by the African Development Bank (AfDB) and the Asian Infrastructure Development Bank (AIDB), two multilateral development banks with AAA ratings. Bank of China (BoC), in collaboration with Hong Kong & Shanghai Banking Corporation (HSBC), was the lead underwriter.

It is worth recalling that Egypt issued Samurai Bond on the Japanese capital markets back in 2022. The value of the issue was JPY 60 billion ($500M). The interest in Asia demonstrates Egypt’s commitment to enlarge its access to sustainable finance at scale.

The AfDB DG for North Africa, Mohamed El Azizi, underscored that Egypt’s #SSFF is aligned with the AfDB #Hi5 priorities and the Bank was more than happy to associate itself with this round of funding.