Reduced Service Fees for the Offeri

The board of directors of the Financial Regulatory Authority (“FRA”) recently issued its decision No. 141 of 2019 to lower the service fees for inspecting and examining applications for offering green bonds (the “Decision”).[1] This follows two previous FRA decisions on green financing: one included a preliminary list of international experts and consultancy institutions (international environmental inspectors) whose reports regarding the assessment and testing of green, environmentally friendly projects are accredited by FRA[2] while the other decision created and regulates an FRA registry of local experts and consultancy institutions who may undertake the assessment and testing of green and sustainable projects that issue green bonds.[3] The new Decision, which is dated 3 November 2019, decreases FRA fees for examining applications for the offering of green bonds such that they are either 0.05% of the value of the bonds in case of a public offering or 0.025% of the value of the bonds if it is a private placement. Accordingly, the Decision aims to encourage the issuance of such bonds, halving their related service fees as per FRA’s statement on the matter.[4] The Decision went into effect a day following its issuance.   [1] FRA Board of Directors Decision No. 141/2019 lowering the service fees for inspecting and examining applications for offering green bonds, available through this link (in Arabic). [2] FRA Board of Directors Decision No. 113/2019 determining the preliminary list of international environmental inspectors, Egyptian Gazette, Issue No. 215, 26 September 2019. [3] FRA Board of Directors Decision No. 127/2019 on the registry of local experts and consultancy institutions who may undertake the assessment and testing of green and sustainable projects, Egyptian Gazette, Issue No. 234, 20 October 2019. [4] Financial Regulatory Authority, “In a step to promote green bonds issuance: FRA exempts issuers of green bonds from 50% of services and examination fees”, 5 November 2019, available through this link.