CIB approves green bond funding
Our friends at leading private sector bank CIB have approved the allocation of USD 70 mn in proceeds from its maiden green bond issuance to fund sustainable projects, the bank said in a statement (pdf) yesterday.
CIB went ahead with Egypt’s first-ever corporate green bond issuance earlier this year, which saw the International Finance Corporation (IFC) subscribe to the full USD 100 mn issuance of noncallable, five-year, fixed-rate bonds. CIB will use the proceeds to finance businesses looking to invest in green buildings, renewable energy, and other eco-friendly solutions, while the IFC will also provide advisory support, including technical assistance.
A first for Egypt: CIB and the IFC will work together to finance green buildings in the first project of its kind in Egypt, the statement said. Three projects in the education, banking, and food and beverage sectors will receive funding to renovate their buildings to make them eligible for green building certification.
In the project portfolio: CIB has also earmarked funding for its new headquarters in the new capital, which will obtain a green building certificate, our friend CEO Hussein Abaza said.
Green bonds: A refresher: A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. The World Bank was the first organization to offer green bonds in 2008 and has since issued over USD 13 bn equivalent in green bonds through more than 150 transactions in 20 currencies.
Advisors: CIB is acting as lead manager of the issuance, Zulficar Law Office is providing legal advice, and Deloitte is the auditor.