Mariam Meskin

The Arab Republic of Egypt this week priced a USD 2bn dual-tranche bond, the latest addition to its debt stack, having inked a USD 2bn syndicated loan last month. Market participants said that the heavily oversubscribed bond issuance is proof that positive investor sentiment – fueled by growing regional and multilateral support, a compelling reform programme and easing regional tensions – towards the previously troubled North African country is growing.

Dubai has long been the hotspot for asset managers in the United Arab Emirates, offering an attractive base to raise and deploy capital in the Gulf. But Abu Dhabi’s financial centre, Abu Dhabi Global Market (ADGM), is wooing a growing number of funds in an effort to replicate this success. Just yesterday (24 July), news broke that Princeville Capital, which counts Hollywood star Leonardo DiCaprio as an adviser, is set to open an office in the capital.

The advent of ESG (environmental, social and governance) financing in recent years brought with it the rise of a seemingly dynamic product, the sustainability-linked loan (SLL). The product, once touted as a game-changer for developed and emerging markets alike, was poised for exponential growth. Borrowers were attracted by the optics of entering into an unchartered market and a potential reduction in their cost of funding, and lenders were keen to bolster their ESG credentials.