Arab Finance: Egypt is in talks with the Asian Infrastructure Investment Bank (AIIB) to guarantee the country’s climate-related bond issuance, AIIB’s President Jin Liqun told Bloomberg in an interview.

The guarantee will facilitate the North African country’s access to capital markets and trim its borrowing costs, Liqun said, adding that the bonds will be used to finance green projects.

AIIB will act as a guarantor for the first time for this kind of issuance, he noted.

The guarantee will allow Egypt to benefit from the private financing for wind farms and other climate projects, the bank’s president highlighted, saying that the bank is exploring the possibilities of offering large-scale guaranteed instruments.