Egypt plans sukuk to finance government investment projects

A rainbow is seen in the sky after a heavy rain in Cairo, Egypt February 19, 2022. REUTERS/Mohamed Abd El Ghany

CAIRO, Feb 28 (Reuters) - Egypt's government plans to issue sharia-compliant sukuk bonds, as well as more Eurobonds and Green bonds, to fund public projects, the finance ministry said on Monday.

The country aims to increase the government's contribution to state-backed green investments in next year's budget as part of a progamme coinciding with it hosting of the COP27 United Nations Climate Change Conference in November, the ministry added.

Egypt's government became the first in the Middle East and North Africa to issue Green bonds when it issued five-year Green bonds in September 2020 with a $750 million deal to finance environmentally-friendly projects in the energy and transportation sectors.

The finance ministry said it plans to double its contribution to government-backed green investments in the next financial year to 30% of all public investment, from 15% in the current year ending on June 30.

Reporting by Ahmed Ismail Writing by Lina Najem Editing by David Goodman

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