AAIB Launches $500 Million Sustainability Bond to Support Egypt’s Green Transition and MSMEs

Arab African International Bank (AAIB) issued Egypt’s first-ever $500 million sustainability bond, marking a major milestone in the country’s green finance efforts. The bond, which has attracted investments from the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and British International Investment (BII), aims to support Egypt’s transition to a greener economy and provide funding for micro, small, and medium-sized enterprises (MSMEs).

The bond represents a significant achievement in Egypt’s sustainable finance landscape. It is Egypt’s first sustainability bond and the largest ever issued by a private bank in Africa. AAIB will allocate 75% of the funds to green projects, such as energy efficiency, renewable energy, and green buildings. The remaining 25% will be directed toward social assets, particularly inclusive finance and MSME development.