Cairo - Mubasher: The Commercial International Bank-Egypt (CIB) announced that the subscription is opened for the first green bonds to be issued in the local market after obtaining preliminary approval from the Financial Regulatory Authority (FRA) on 21 June. 

The value of the private placement amounts to $100 million in non-callable fixed-rate bonds, CIB said in a bourse disclosure on Wednesday.

Proceeds from the five-year bonds will be used to finance a portfolio of green loans provided by CIB to its corporate as well as medium- and small-enterprise (SME) customers, in addition to financing the bank's green building capital expenditure for up to 20% of the proceeds. 

The International Finance Corporation (IFC) has committed to subscribe to the full value of the issue. 

The proceeds will further be used to finance several categories such as green buildings, energy efficiency, renewable energy, water and wastewater management, and clean transportation. 

The CIB will publish its green bonds framework, audited by Moody's Vigeo Eiris, this week, setting out the parameters for the use of proceeds, eligibility, selection criteria for the projects, management of proceeds, and reporting and impact evaluation.