Dr. Maait: Determining the government's environmental and social priorities Allowing the issuance of green, blue, social, and sustainable bonds and others related to women’s empowerment.

Adding new categories of green projects with a social dimension to Egypt's sustainable portfolio.

Ahmed Kouchouk: Covering axes, most notably: adaptation to climate change and social and economic progress.

Achieving most of the sustainable development goals of the United Nations and expanding financing.

Moody's: Very Good Sustainability Quality score of the "Egyptian Sovereign Sustainable Financing Framework ".

 

Dr. Mohamed Maait, Minister of Finance, announced the “Sovereign Sustainable Financing Framework” of Egypt, as it’s a significant key player addressing the international efforts to accelerate the response to climate change in conjunction with “COP 27” in Sharm El-Sheikh; Affirming our commitment to achieving the goals of sustainable development so that green, blue, social, sustainable, and gender bonds can be issued; explaining that the “Sovereign Sustainable Financing Framework” defines the government’s environmental and social priorities, and represents a new step to maintain Egypt’s leading position in the field of innovative climate financing, social and economic development in Africa and the Middle East, as it is an update of the green financing framework that was launched in 2020, where Egypt issued the first green sovereign bonds in the Middle East and North Africa at a value of $750 million, and in 2021 the first environmental impact report was published including the size and benefits as a percentage from the financial return received from the green offerings with regard to financing targeted projects, in addition to presenting and explaining all achieved environmental indicators, in a way that enhances investors’ confidence, as the report conforms to international standards and practices followed to achieve transparency.

 

The minister said that new categories of green projects with a social dimension had been added to Egypt's sustainable portfolio to reflect the ambition of the vision of "Egypt 2030", the updated contributions at the national level, the national strategy for climate change 2050, and the national programs for structural reform, explaining that the vision of "Egypt 2030" represents the basic strategy for Egypt to achieve sustainable development, and is based on 3 main dimensions: environmental, social and economic, which guides the nation in setting policies and programs to achieve the United Nations goals for sustainable development; In a way that enables achieving sustainable and comprehensive development, eradicating poverty and achieving prosperity for future generations.

 

The minister praised the efforts of the sustainable financing working group at the Ministry of Finance in cooperation with the ministries of Environment, Planning and Economic Development, Transport, Housing, Utilities and Urban Communities, Electricity and Renewable Energy, Higher Education, Communications and Information Technology, Agriculture and Land Reclamation, Irrigation and Water Resources, Health and Population, and Social Solidarity.

 

Ahmed Kouchouk, Vice Minister for Financial Policies, and Institutional Reform, indicated that the sustainable financing framework of Egypt covers 10 axes: “clean transportation, basic affordable infrastructure, new and renewable energy, pollution prevention and control, adaptation to climate change, energy efficiency, sustainable water and waste water management, access to basic services, social and economic progress and empowerment, and basic infrastructure at reasonable prices”, this “framework” will enable us to achieve most of the sustainable development goals of the United Nations, and contribute to expanding financing methods, pointing out that this “framework” has obtained Very Good Sustainability Quality Score from Moody's investor service. This confirms the compatibility of the “framework” with international standards related to the principles of the International Capital Market Association “ICMA”, in addition to the principles of the Loan Market Association “LMA”. This “framework” also obtained a “distinguished” degree regarding the criterion of contribution to sustainability, and both “Citibank” and “Standard Chartered Bank” acted as joint banks for structuring the sustainable financing framework.

 

“It has been a privilege for Citi to work with the Ministry of Finance of Egypt to prepare this Sovereign Sustainable Financing Framework, building on the Green Financing Framework which supported the inaugural green bond in 2020 where Citi acted as a Joint Lead Manager. The expanded green and new social eligible project categories will support Egypt’s commitment to achieve its sustainable development strategy and updated Nationally Determined Contribution.”

Iman Abdel Khalek, Co-Head of CEEMEA Debt Capital Markets, Citi

 

“We are proud of our support for Egypt in finalizing the sovereign sustainable financing framework, which addresses additional categories and themes of its social ambition within the framework, such as food security, sustainable food systems, affordable basic infrastructure, social and economic progress, and empowerment, and this will support Egypt's direction in financing its social agenda, along with expanded categories of green investments; In line with Egypt's aspirations regarding climate and sustainability.”

Sunil Kaushal, Regional CEO of Standard Chartered Bank, Africa and the Middle East,