The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg

The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg:

Egypt pulled in orders for nearly five times the $750 million size of the Middle East and North Africa’s first sovereign green bond, as it pushes ahead with anti-pollution and renewable energy projects.

The Arab world’s most populous nation sold the five-year notes at a yield of 5.25%, well inside an opening target of about 5.75%, after amassing more than $3.7 billion of investor orders. The sale “put Egypt on the map of sustainable financing,” the Finance Ministry said.

Among those attracted were a “new investor base from Europe, the U.S., East Asia and the Middle East, as well as asset mangers, pension, investment and insurance funds,” the ministry said in a statement. Such “high-quality,” long-term investors “will reduce price volatility.”

The bond forms part of Egypt’s strategy to lock-in new financing sources and broaden the country’s investor base, steps that could in turn help lower its borrowing costs. It's touting a $1.9 billion portfolio of potential green projects, including clean transportation, renewable energy and sustainable water management.