Egypt's President Abdel-Fattah El-Sisi approved on Monday legislation for the issue of tax free investment certificates used to finance the extension of the Suez Canal.

A specific date for issuing of the certificates was not given. During the conference announcing the launch of the certificates on Sunday 31 August, Hisham Ramez, governor of the Central Bank of Egypt said the certificates will be issued as soon as the president ratifies its legislation.

The certificates will be exempted from any taxation. 

The government's target is to collect up to LE60 billion (about $8.4 billion), needed for the digging of the Suez Canal extension and six tunnels that will link the east and west banks of the canal. 

The certificates will be issued at a value of LE10, LE100, LE1,000 and its multiples, with a maturity of five years at a 12 percent interest rate.

The low value certificates, worth LE10 and LE100, will be redeemable with cumulative interest, at the end of the five years, while holders of certificates worth LE1,000 and its multiples will reap a 12 percent interest rate on a quarterly basis.

State-owned entities Bank Misr, the National Bank of Egypt, Banque du Caire and the Suez Canal Bank will issue the certificates, which other banks will be able to order for customers upon request. 

Certificates will be available to Egyptian individuals, corporations and legal entities but will not be tradable.

Holders of the certificates will have the right to a loan from the issuant bank worth up to 90 percent of their certificate value.