Luring investors: Suez Canal 'investment certificate' to guarantee 12% yield
Suez Canal investment certificate yields will be paid to certificate-holders from annual revenues, after one year of drilling the canal, Governor of Central Bank of Egypt Hisham Ramez announced Friday.
The certificates, agreed upon by President Abdel Fattah Al-Sisi as a source of financing the new Suez Canal project, will be issued through public sector banks over a period of 5 years. The certificates come with 12% interest rates, which Ramez said was the highest interest rate to lure participation in the project.
Egyptian organisations and individuals within Egypt or abroad are allowed to access the investment certificates.
Ramez added that after that year, which is the timeline of drilling the new canal, the yields of certificates will be paid from financial flows to the Suez Canal Authority and return on development projects that are planned to be established as a part of the Suez Canal Axis Development project.
A banking consortium, including public and private banks, will contribute to financing the project, Ramez noted.