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Sunday, 30 August 2020

Raya’s BariQ receives FRA approval for a EUR 40 mn green bond offering

DEBT WATCH- BariQ, Raya’s recycling unit, receives FRA approval for a EUR 40 mn green bond offering: The Financial Regulatory Authority (FRA) has greenlit Raya Holdings’ subsidiary BariQ’s EUR 40 mn green bond issuance, unnamed sources told Al Mal. The company plans to take the green bonds to market by early 2021 to finance the expansion of its recycled plastic food packaging operations. The offering is expected to “garner support” from some of the leading multilateral finance institutions, said the sources, who didn’t elaborate on what form this support will take.

Advisors: BariQ has reportedly tapped Misr Capital as financial advisor for the issuance and Zaki Hashem & Partners as legal counsel.

2020-21 is the year of green bonds in Egypt: CIB is on track to issue Egypt’s first green bonds, working alongside the International Finance Corporation (IFC) to finalize the issuance through a private placement this quarter, Heba Abdellatif, head of debt capital markets at CIB, told Enterprise in June. The government, meanwhile, has been working to issue up to USD 500 mn worth of green bonds in FY2020-2021, Assistant Finance Minister for Debt Khaled Abdel Rahman told Enterprise. This small issuance would mainly serve to test the markets’ appetite and gauge investors demand and the interest rates they would be seeking.

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