The Commercial International Bank (CIB) (COMI) has opened a subscription for the first green bond to be issued in the local market after having received initial approval from the Financial Regulatory Authority on 21 June 2021, according to CIB's statement filed to the Egyptian Exchange.
The private placement is valued at $100 million (EGP 1567.07 million) in non-callable fixed-rate bonds. The tenor of the issue is five years and proceeds will be used to fund a portfolio of green loans extended by CIB to its corporate as well as medium- and small-enterprise clients in addition to funding CIB's green building capital expenditure for up to 20% of the proceeds. International Finance Corporation will subscribe to the full value of the issue.
The bond proceeds will further be directed to various categories of climate supporting initiatives, including green buildings, energy efficiency, renewable energy, water and wastewater management and clean transportation, CIB added.
On May 27th, Talaat Moustafa Group (TMG) (TMGH) and CIB announced the establishment of new entity specialized in real estate during quarter one of 2021.
CIB provides banking services across the country through more than 200 branches and units. The bank's segments include corporate banking, investment banking, retail banking, treasury and capital market services, and others.
At press time, the conversion rate is $1 = EGP 15.67
