Egypt will consider listing its first green bond on the London Stock Exchange this year, said a joint statement by the UK Secretary of State and Egyptian International Cooperation Ministry on Monday. UK Secretary of State for International Development Alok Sharma and Egyptian Minister of International Cooperation Rania Al-Mashat have agreed in a joint statement to enhance economic cooperation on the sidelines of the UK-Africa Investment Summit taking place in London. A green bond is like a normal bond, but with an additional commitment to deploying its financing to genuinely green projects that address key areas of environmental concern such as climate change, depletion of natural resources, loss of biodiversity, and pollution. In November, Egyptian Financial Regulatory Authority (FRA) chairman Mohamed Omran said the country is in the pipeline for green bond issuance in 2020. Issuing sukuk, green bonds could allow Egypt to attract new types of investors. Egypt's market regulator announced in August 2018 the approval of the green bond legal framework, establishing an article to regulate the issuance of green bonds and contribute to eco-friendly projects in the country. The International Finance Corporation (IFC) and the Egyptian Financial Supervisory Authority have been discussing since June 2018 the rules and guidelines for the green bond issue. By issuing green bonds, Egypt seeks to fund eco-friendly projects and provide them with the appropriate tools to establish such projects. The projects will cover the fields of renewable energy, construction, transport, sustainable housing, and more. Green bonds are usually provided by international organizations such as the World Bank, a huge issuer of green bonds.
