Four Egyptian banks are targeting the issuance of investment certificates next Monday, dedicated to fund the new Suez Canal waterway project.
The total estimated cost of drilling a new channel parallel to the Suez Canal, part of the comprehensive Suez Canal Corridor Development Project, is set at around 60 billion Egyptian pounds (US$8.4 billion).
According to high-profile sources at Egypt’s Finance Ministry, the National Bank of Egypt (NBE), Banque Misr, Banque Du Caire, and Suez Canal Bank are prepared for the issuance of the Suez Canal investment certificates after several meetings with Central Bank of Egypt governor Hisham Ramez.
The sources expected high turn-out on purchasing the investment certificates, by virtue of the four banks’ unique geographical presence across the country, with total number of branches amounting to 900 and wide expertise in managing the certificates.
Only Egyptians will have the right to buy certificates for the new development. They are five-year investment certificates, and will be offered to residents in EGP-denominated certificates with values of EGP 10, EGP 100, and EGP 1,000 at 12% interest, and in dollar/euro-denominated certificates for Egyptians living abroad, at an interest rate of 3%.
The government, represented by the Ministry of Finance, will be the guarantor of the certificates.