Egypt Raises RMB 3.5B Through Green Panda Bonds

Egypt became the first African country to raise capital on the Chinese financial market via the issuance Green Panda Bonds. The total value of the bonds is estimated at RMB 3.5 billion (nearly USD 479 million) with a term of 3 years.

The bond issuance is partially guaranteed by the African Development Bank (AfDB) and the Asia Infrastructure Development Bank (AIDB). Thanks to the AAA ratings of the banks, a favorable rate of 3.5% was secured for the bond. The Bank of China (BoC) was the lead underwriter and bookrunner, with support from the Hong Kong Shanghai Banking Corporation (HSBC) of China,

Panda bonds are issued in China’s domestic capital market by foreign governments or corporations and are denominated in Chinese yuan. Egypt plans to put the proceeds from the Panda Bonds to finance green development projects under its Sovereign Sustainable Financing Framework (SSFF) and which are in line with #SDG.