Egypt’s FRA cuts fees for sustainable securities applications to 50%

Egypt’s Financial Regulatory Authority (FRA) has cut the fees for reviewing applications to issue sustainable finance securities by half, seeking to encourage companies to raise funds for environmental and social projects.

The reduction applies to both public offerings and private placements, the FRA said in a statement on Monday.

The measure extends an existing fee reduction for green bonds to a broader range of sustainable finance instruments covered by recent amendments to Egypt’s capital market regulations.

Eligible securities include sustainability and sustainability-linked bonds, social bonds, gender bonds supporting women’s empowerment, climate bonds financing environmentally friendly projects, and transition bonds aimed at reducing emissions from existing high-emitting activities.

FRA Chairman Islam Azzam said the decision followed amendments to the executive regulations of the Capital Market Law and reflected the regulator’s support for financing instruments that contribute to sustainable development.

The authority said the fee reduction was intended to encourage companies and institutions to finance projects addressing environmental, climate, and social challenges in line with the objectives of Egypt Vision 2030.

Proceeds from the securities can finance green projects, initiatives promoting gender equality, emissions reductions, climate-change mitigation, pollution control, and improvements in energy and water efficiency, the FRA said.

Azzam said the regulator also aimed to increase the contribution of non-bank financial activities to improving quality of life and supporting projects with significant social and environmental impact.