CAIRO: President Abdel Fattah al-Sisi issued Tuesday a decree approving the Suez Canal Certificates Law to raise the needed finance for the Suez Canal expansion, state-owned MENA reported.
Sisi had announced earlier that the digging operations would be implanted by local companies under the Armed Forces’ supervision, citing “national security.” Sisi also said the project would be financed through issuing an IPO for Egyptian citizens only, excluding foreigners from contribution.
The government will issue the certificates to raise 60 billion EGP to finance the project, which aims to increase the capacity of the vital waterway. The certificates will be offered with a lifetime of five years at a 12 percent interest rate.
Certificates issued in local currency will be offered in three categories: 10 EGP, 100 EGP and 1,000 EGP at a 12 percent interest rate. “Revenues from the 10 EGP and 100 EGP certificates will be paid after five years, while the 1,000 EGP certificates will be paid quarterly,” governor of the Central Bank of Egypt said at a press conference Sunday.
The National Bank of Egypt, Banque Misr, Banque du Caire and Suez Canal Bank will be in charge of issuing the investment certificates, and have been directed to set specific outlets for the certificates’ sale. These banks have also been urged to extend working hours until 6:00 p.m. during the first two weeks after the offering, Ramez said.