Egypt's postal service is currently offering the investment certificates being sold by national banks to fund the Suez Canal expansion project, Al-Ahram’s daily newspaper reported on Sunday.
The certificates, offering a 12 percent interest rate over five years, have met overwhelming demand since they were first issued earlier this month, raising LE40 billion ($5.7 billion) in the first eight days out of the targeted LE60 billion ($8.5 billion) needed by the government to fund an extension of the vital waterway.
Some 4,000 branches of Egypt Post across the country will be taking orders for the certificates and submitting them to Banque du Caire, reported Al-Ahram, citing the bank's chairman, Mounir Al-Zahed.
Four state-run banks; namely Bank Misr, the National Bank of Egypt, Banque du Caire, and the Suez Canal Bank, have been issuing the certificates since September 4th, and offering them through banks across the country.
The certificates are issued at a value of LE10, LE100, LE1,000 and its multiples. Yield is to be distributed quarterly to owners of LE1,000 certificates and its multiples, while it will be cumulative for LE100 and LE10 certificates.
The sense of patriotism surrounding the Suez Canal, and an interest rate higher than any other on government-offered certificates, have contributed to popular demand for the certificates.
According Central Bank of Egypt governor Hesham Ramez, 90 percent of the funds raised were from individuals, while only 10 percent were from institutions.
If the certificates do not cover the
