Egypt turns to Asia to secure low-cost funding

Reuters/Amr Abdallah Dalsh

Egypt is ready to explore the Asian financial market to diversify funding sources and reduce financing costs, according to the country’s finance minister.

“We are expanding our green, sustainable, and low-cost blue financing, with the aim of directing it towards funding projects in sustainable public transportation, health, education, agriculture, food, and other socially impactful projects,” the UAE state-run Wam news agency reported Mohamed Maait as saying at the Asian Financial Forum in Hong Kong.

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Egypt has diversified its funding sources globally, including issuing the first green sovereign bonds in the Middle East and North Africa. The country also entered the Chinese market with a sustainable Panda bond and returned to Japanese markets with the second international issuance of Samurai bonds.

This approach is to attract new segments of investors and contribute to achieving sustainable development goals, the minister said.

Maait urged the need for innovative and facilitative financing solutions, given the challenges faced by countries in meeting the essential needs of their citizens due to rising prices and difficulties accessing international markets.

Egypt seeks to deepen cooperation with Asian partners to attract more investors, leveraging the country’s promising economic opportunities and competitive advantages, he added.