Will COVID-19 spur green bond issuances in emerging markets?
As many countries turn to debt to help fund their recoveries from the coronavirus pandemic, an increasing number of governments and companies are looking at sustainability-focused financial instruments to fund major projects.
To take an example, in late September Egypt issued its first sovereign green bond – the first ever in the MENA region. Officials said the five-year, $750m bond, which attracted significant interest from Europe and the US, would go towards funding a series of sustainable projects in the country.
On October 18 the government announced a shortlist of projects to be funded by the initial green bond offering. The $500m list featured five projects: the construction of a monorail connecting the new administrative capital to the 6th of October City; a water treatment plant in the Arab Al Madabegh area; a water desalination plant in Dabaa; a sewage treatment plant east of Alexandria; and a water treatment facility in Giza.
Photo courtesy of torsmedberg.