Zulficar & Partners Advised Arab African International Bank on Issuance of First Sustainable Development Bonds Program
Zulficar & Partners Advised Arab African International Bank on Issuance of First Sustainable Development Bonds Program
Zulficar & Partners Law Firm has successfully represented Arab African International Bank (AAIB) in the issuance of its first Sustainable Development Bonds Program, valued at USD 500 million. The firm’s work included negotiating the relevant Subscription Agreements with the investors involved in this landmark transaction: the IFC – International Finance Corporation, the European Bank for Reconstruction and Development (EBRD), and British International Investment (BII).
In this transaction, Sharkawy & Sarhan acted as counsel to the investors.
This issuance is the first of its kind in Egypt and marks the largest sustainability bond issued by a private bank in Africa. The program is designed to support green, sustainable, and social projects across Egypt. It has been approved by the Financial Regulatory Authority (FRA) and will be issued in a private placement to the three prominent investors.
The primary objective of the issuance is to finance or refinance green and sustainable social development projects, with a focus on medium, small, and micro projects, in alignment with Green Bonds/Sustainable Development Bond Principles and the relevant FRA Board Decisions.
This groundbreaking issuance is seen as a key milestone in advancing financial inclusion in Egypt, unlocking the potential of sustainable finance, and increasing capital market flows into green and social projects. It also provides long-term hard currency funding to sustain projects, particularly those benefiting micro, small, and medium enterprises (MSMEs) in Egypt, thereby contributing to the resilience of the country's economy.
The Zulficar & Partners team assisting in this transaction was led by Founding Partner Mona Zulficar, Chair of the Executive Committee and Head of the Banking and Project Finance Group, alongside Senior Associates Alyaa Rabea and Ahmed Fares.
In this transaction, Sharkawy & Sarhan’s team was led by Partner Ahmed Haggag and supported by Associate Raghda ElQabbage.
