Suez Canal Certificates Almost Half Way Through Meeting Target Revenues

Sale proceeds of Suez Canal investment certificates hit 7 billion Egyptian pounds on Tuesday, Central Bank Governor Hisham Ramez said, bringing the total revenues to 27 billion pounds, almost half way through meeting the target amount of 60 billion pounds.

“Banks are still receiving popular demands for purchase,” Ramez told state-run MENA agency, adding that many banks have kept their doors open to the public.

Sales revenue hit 6 billion pounds, 8.5 billion pounds, and 5.5 billion pounds respectively on the first three days of release.

“These figures have never been realised before,” Ramez said, “with this type of certificates, it is considered a precedent even on the global level.”

The certificates were first issued September 4 and were available for purchase at the National Bank of Egypt, Banque Du Caire, Banque Misr, and Suez Canal Bank.The outcome of the certificates would be deposited in the Suez Canal Authority’s account at the Central Bank.

The investment certificates financing the project would be tax-exempt, as per the second Article of the decree.

The government hopes to raise the maximum amount of funds needed for the first part of the project, estimated at 60 billion pounds, through the sale of the investment certificates.

Foreigners will not be allowed to take part in the financing operations.

On August 5, Sisi launched a mega project which entails digging a 72-km (45-mile) bifurcation to the Suez Canal as well as developing the Suez Canal region. Digging the bifurcation is expected to cost $4 billion.

The government had announced that five-year investment certificates with an interest rate of 12 percent would be used to finance the project. Certificates were chosen to finance the 60 billion Egyptian-pounds project as they do not grant certificate-holders ownership rights.

The project is implemented under the supervision of the armed forces. While launching the project, Sisi said digging the new bifurcation to the canal would be completed within a year, instead of a previous deadline of three years.

Source : Aswat Masriya