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IFC, financial regulator in talks on green bonds guidelines

Thursday 28 June 2018 11:21 AM

Mohammed Omran, Chairman of the FRA
Mohammed Omran, Chairman of the FRA

Al Mal:
IFC, a member of the World Bank Group, and Egypt's Financial Regulatory Authority have launched a consultation process for guidelines to foster the development of green bond market and help address climate change.

IFC has been assisting the FRA in formulating draft guidelines for green bonds that will now undergo a consultation process with market stakeholders by providing comparative studies from international markets.

A green bond is like a normal bond, but with an additional commitment to deploying its funds to projects that address key areas of environmental concern like climate change, natural resources depletion, loss of biodiversity and air, water or soil pollution.

“Our partnership with IFC helped us provide the necessary information to both issuers and investors, providing a comprehensive reference guide for the market to develop a new financial tool to support green growth in Egypt,” said Dr. Mohammed Omran, Chairman of the FRA. “This is also in line with our strategy to develop new financial instruments within the Egyptian market over the next four years.”

IFC focuses on helping the private sector address climate change through investments and innovative financing, and by addressing regulatory and policy obstacles to green growth. Green bonds can help finance investments in renewable energy, agribusiness, green buildings, and energy efficiency projects.