https://arab.news/vz8mm
RIYADH: The European Bank for Reconstruction and Development is investing $100 million in a certified green bond issuance of $334.5 million, backed by Scatec’s six solar power plants in Egypt, according to a press release.
This green bond is certified under climate bond standards. It is also the first private green bond issued in Egypt and the southern and eastern Mediterranean region.
According to the statement, the bank is also providing a $30 million credit enhancement facility for participating investors.
“The issuance will have a catalytic effect on renewable energy investors seeking access to capital markets in a volatile post-pandemic macroeconomic environment, allowing them to source funding from the growing pool of international institutional investors,” the EBRD said in the statement.
Apart from the EBRD, the issuance is also co-financed by the US International Development Finance Corporation, FMO Entrepreneurial Development Bank, the German Development Finance Institution, and private institutional investors.
“We are delighted to continue our support of Egypt’s renewable energy sector and to mobilize new private and institutional capital through this highly innovative and timely instrument,” said Nandita Parshad, EBRD managing director, sustainable infrastructure group.