Egypt issues 3.5-bln-yuan sustainable panda bonds

CAIRO, Oct. 16 (Xinhua) -- Egypt issued on Monday sustainable panda bonds in the Chinese financial market in the amount of about 3.5 billion yuan (nearly 479 million U.S. dollars).

In a statement, Egyptian Finance Minister Mohamed Maait said the issuance has a maturity of three years with a coupon rate of 3.5 percent.

He explained that the issuance is backed by a credit guarantee provided by international development banks with high credit ratings, such as the Asian Infrastructure Investment Bank and the African Development Bank.

Maait noted that Egypt is the first country in the Middle East and North Africa to issue sustainable panda bonds, adding that it succeeded in attracting many Chinese investors.

The minister said the issuance serves as a new portal for achieving sustainable development goals, as it facilitates cooperation and the exchange of experience between Egypt and China, building bridges of green and sustainable financing, and encouraging investment as one of the fundamental pillars, which is in line with Egypt Vision 2030, the country's Sustainable Development Strategy.

Panda bonds are yuan-denominated debts sold by overseas issuers to meet financing demand.