Global Market | |
Global Market | |
736 VIEWS | |
![]() |
Friday, October 09, 2020/ 02:20PM / United Capital Research /
Header Image Credit: Brand Spur
At the end of September
2020, the government of Egypt recorded a first, not only in Africa but also in Middle
East (the two regions that the country bridges) as it successfully tapped the
international debt capital market to issue a USD-denominated sovereign Green
Bond. According to statement from the Egyptian Ministry of Finance, orders
worth five times the $750 million raised, turned up for the five-year note and
allowed the government to issue at a lower yield of 5.25% (vs. initial target
of 5.75%).
Notably, 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. Specifically, the $750 million raised, plus that from future planned
green issuance, will contribute directly to the financing of $1.95 billion of
public investment projects tagged as green by the government. Also, the
Green-note issuance follows the country's historic $5.0bn Eurobond issued in
May 2020, that helped Egypt finance its Covid-19 response.
In all, we believe the
success of Egypt's green bond will open further opportunity for other African
countries to explore innovative issuances such as this. However, we note that
the success of Egypt's issuance can be tied to the government's clear intention
to improve environmental outcomes as well as the country's good economic policy
record and IMF-anchored reforms over the past few years. Already, the Nigerian
government have issued green bond in the domestic market and current reforms
going on within the country further strengthens the investment case for an
international green bond.
Top African
Stories
Looking
Forward
Angola
Sep-2020
Inflation Report - October 23rd
Sept-2020
Net Reserves- October 23rd
Ghana
Sept-2020
M2 Money Supply - October 24th
Sept-2020
Inflation Report - October 14th
Kenya
Q2-2020
GDP Report - October 24th
Aug-2020
Overseas Remittances- October 16th
Morocco
Sept-2020
Inflation Report - October 23rd
Sept-2020
Money Supply M3- October 17th
Nigeria
Sept-2020
Inflation Report - October 15th
Sept-2020
Private Sector Credit- October 28th
South
Africa
Aug-2020
Mining Production YoY- October 13th
Aug-2020
Gold Production YoY - October 13th
Aug-2020 Retails Sales MoM - October 14th
Visit African Markets in Proshare MARKETS
Related News
1.
Federal Reserve Begins
2020 Census of Finance Companies and Other Lenders
2.
Off the Cliff -
Sub-Saharan African Update
3.
Emerging Market
Covenant Quality Reaches All-time Weakest Level Amid Slowing Issuance
4.
Will A Zambian Default
Risk Worsen Credit Risk Premium For SSA Issuers?
5.
Nigeria, South Africa
and Ghana: Pre-COVID, COVID and Post-COVID
6.
African Banks Hold
Government Debt That Exceeds Their Equity
7.
Zambia Requests
Suspension of Debt Service Payment to Holders of US Dollar Debt for Six Months
8.
Romania Officially
Becomes an Emerging Market
9.
Ghana's Economy: Real
GDP Dipped By 3.2% YoY in Q2 2020
10. Federal Reserve Issues
FOMC Statement and Implementation Note from Its Sept 15-16 Meeting
11.
Sub-Sahara African GDP
Growth: South Africa Report Fourth Contraction in Q2-2020
12. Chinese Banks' Profit
Decline to Worsen In 2H20
13. What PMIs Tell Us About
Economic Recoveries In Africa
14. ESMA Sees High Risk of
Decoupling of Financial Market Performance and Underlying Economic Activity
15. China's Mega Banks Lost
Billions of Dollars in Profit as Bad Loans Rise During Coronavirus Pandemic
16. Ghana Provides
Reflective Accounts of Events with Nigeria
17. Africa's Travel and
Tourism Industry: Is Recovery at Sight?
18. SSA Economic Update:
Sub-Saharan Africa: Between Lives and Livelihoods
19. The COVID-19 Story from
South Africa
20. SSA Foreign Exchange in
H2-2020: To Recover to Pre-COVID-19 Level?