EGYPT – The African Development Bank (AfDB) through its Board of Directors, have approved an €83 million (US$99.07m) loan to finance the second phase of Egypt’s Electricity and Green Growth Support Program.
The funding is part of the Bank’s budget support to the Egyptian government to strengthen its electricity infrastructure, which is expected to bolster the private sector and accelerate recovery from the Covid-19 crisis.
The program seeks to enhance the power sector’s financial sustainability, governance and operations. It will also advance the provision of clean, reliable energy to drive green growth. Egypt’s successful reforms in the sector have led to greater private investment in utility-scale renewable energy projects.
“Egypt’s Vision 2030 instils the sustainability ethos across all sectors. Energy and electricity are amongst the top sectors in Egypt’s International Development Cooperation’s portfolio, pushing towards a green reform,” said Egypt’s Minister of International Cooperation, Rania Al Mashat.
“Egypt’s Vision 2030 instils the sustainability ethos across all sectors.”Rania Al Mashat – Minister of International Cooperation, Egypt
“With 2021 being the year of private sector engagement, the Electricity and Green Growth Support Program will contribute towards sustainable growth and job creation and catalyze the development of Egyptian private entities.”
Malinne Blomberg, the Bank’s Deputy Director General for the North Africa Region, said the African Development Bank continues to actively engage with the Egyptian government and private sector companies to support the country’s medium-term development plan and economic reforms.
He added that it is with a particular focus on economic infrastructure such as energy, transport, water and sanitation, as well as industrialization.
In addition to the African Development Bank, Agence Française de Développement and the Japan International Cooperation Agency have also provided financial support to Egypt’s Electricity and Green Growth Support Program.
This comes days after AfDB launched a A$600 million (US$463.9 million) 5.5-year Kangaroo bond, marking its return to the Australian dollar bond market.
The transaction was led by Nomura and RBC Capital Markets. It is the institution’s first benchmark Kangaroo since early 2018 and it is first in the mid-curve since 2015. It is also the largest AUD trade ever issued by the Bank.
More than 30 investors participated in the deal, with a total order book of more than A$775 million (US$598.47m), leading to an upsize of the trade from the announced size of A$250-300 million (US$193 – 232 million) to the final size of A$600 million (US$463.9 million).