CAIRO: Public banks are set to offer investment certificates by the end of current week with a 12 percent interest rate to fund the Suez Canal expansion project, Mohammed Barakat, the head of Banque Misr, told Al Mal Saturday.
The public banks including the National Bank of Egypt along with Banque Misr and Banque du Caire, Al Mal reported.
In a televised statement Thursday Prime Minister Ibrahim Mahlab announced Egyptian banks would issue Suez Canal investment certificates, which last for five years with a 12 percent interest rate, following a meeting between President Abdel Fatah al-Sisi, the governor of the Central Bank of Egypt (CBE), and the ministers of international cooperation, finance and investment, Ahram news gate reported Thursday.
Issuing investment certificates will transfer the fund of the New Suez Canal project topublic banks, not the Egyptian Stock Exchange, which could harm the EGX, Saeed Hilal, executive manager of Al-Hilal Al-Saudi Company for Financial Securities told The Cairo Post late Saturday.
“Offering investmentcertificates instead of shares will increase state burdens,” he said, adding that the government should be obliged to pay annual debt services forinvestors.
Sharif Sami, head of International Financial Supervisory Authority, announced Saturday that the Investment Certificate is one of the governmental finance tools besides shares, bills and Sukuk, Mubasher reported Saturday.
“Issuing investment certificate does not mean limiting finance on these certificate or not offering shares at the EGX”, he added, disclosing that , the upcoming period will witness presenting other kinds of finance.