الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA  Chairman:

• This decision aligns with the latest amendments to the Capital Market Executive Regulations, reflecting the Authority’s unwavering commitment to environmental, social and governance (ESG) goals.

FRA Board of Directors chaired by Dr. Islam Azzam, has issued a landmark resolution cutting service fees for reviewing sustainable securities applications. The move aims to encourage companies to issue specialized debt instruments that directly fund environmental, climate, and community development projects in line with Egypt Vision 2030.

Under the new resolution, fee reduction extends beyond traditional green bonds—previously governed by Board Resolution No. 141 of 2019—to encompass all sustainable instruments introduced in the Executive Regulations of the Capital Market Law. The expanded framework includes Sustainable securities and Sustainability-Linked Bonds, Social Bonds, Gender and Women’s Empowerment Bonds, Climate Bonds and Transition Bonds targeting industrial emission reductions.

The said resolution cuts FRA service fees by 50% for reviewing and examining offering applications for these sustainable securities, applying equally to public offerings and private placements.

FRA Chairman Dr. Islam Azzam stated that the resolution aligns directly with recent amendments to the Executive Regulations of the Capital Market Law. These amendments position sustainable securities as conditional financing instruments tied to sustainable development goals, while maintaining the issuer’s obligation to repay the principal and yield.

He reaffirmed the Authority’s commitment to support large-scale projects that address key social and environmental objectives, thereby maximizing the non-banking financial sector’s role in improving overall quality of life.

FRA Chairman explained that proceeds from sustainable securities are utilized to finance a wide array of developmental projects. These encompass green projects, initiatives fostering women’s empowerment and gender equality, projects aimed at reducing carbon footprints and mitigating global warming, as well as schemes targeting pollution abatement, harmful gas reduction, water pollution control and energy efficiency programs.