The Board of Directors of the African Development Bank Group has approved a partial credit guarantee of $345 million to Egypt to finance green and social projects.

The bank group’s partial credit guarantee will allow Egypt to raise the equivalent of $500 million in the Panda Bond market, which is denominated by the Chinese Yuan issued by foreign borrowers.

“Egypt will be the first African country to issue a Panda bond and, as the African Development Bank, it is our pleasure to provide support to Egypt to enable them to access the market. This partial credit guarantee will enable Egypt to enhance its credit rating and catalyze financing from international investors on competitive terms and pricing,” Mohamed El Azizi, African Development Bank Director General for North Africa, said.

Bond proceeds will be used for clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, MSMEs financing, and essential health services initiatives, among others. These sectors are prioritized under Egypt’s Sovereign Sustainable Financing Framework (SSFF).