Skip to content Skip to Search
Skip navigation

China injects $956m into Egypt’s central bank

CDB's cash injection is to help finance projects agreed upon with Egypt during the third Belt and Road Initiative summit Reuters/Fan Jiashan
CDB's cash injection is to help finance projects agreed upon with Egypt during the third Belt and Road Initiative summit
  • CDB has $6.5bn of loans to Egypt
  • $500m of ‘panda bonds’ last month
  • Pressure to devalue Egyptian pound

The China Development Bank (CDB) has injected ¥7 billion ($956 million) into Egypt’s central bank to help finance projects agreed upon during the third Belt and Road Initiative (BRI) summit last month. 

The funds are part of a loan agreement signed during the summit in Beijing, as well as the nine programmes outlined in 2021’s Africa-China Cooperation, according to a CDB statement.

CDB said the loan would promote “further in-depth integration of the BRI and Egypt’s Vision 2030, as well as stimulate fresh financial movement to boost economic, trade, and financial cooperation between China and Egypt”.

As of the third quarter of 2023, CDB has issued loans to Egypt with a total value of more than $6.5 billion. They include a line of credit worth $1 billion, and loans for small and medium-sized companies through two of its largest banks, the National Bank of Egypt and Banque Misr.

The CDB statement also noted that it has financed the electricity transmission network in Egypt with a capacity of 500 kilowatts.

Egypt is experiencing a severe shortage of foreign currency liquidity and a rise in its external debt obligations, with both the IMF and Gulf countries holding off from providing any further financial support until Cairo devalues its currency and implements economic reforms. 

On October 17, Egypt issued $500 million of sustainable panda bonds on the Chinese financial market, becoming the first Mena country to do so. 

Mohamed Maait, Egypt’s finance minister, said the panda bonds – securities denominated in yuan but issued by non-Chinese borrowers – were part of government efforts to diversify financing sources.

They will be used to finance projects that support sustainable development goals, in line with Egypt’s National Climate Change Strategy 2050. 

Latest articles

Musicians perform at the Sharjah Ramadan Festival. Retailers offered discounts of up to 75% on local and international brands

Sharjah’s Ramadan retail sales peak at nearly $110m

Ramadan retail sales in Sharjah hit a new record high of AED400 million ($109 million) in 2024, reinforcing the positive outlook UAE companies had ahead of this year’s holy month. Sales jumped 25 percent year on year during the Sharjah Ramadan Festival 2024, which concluded last Saturday, the UAE state-run Wam news agency reported, quoting […]

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]