Egyptian banks will begin distributing quarterly yields due on Suez Canal investment certificates on Sunday, state-run news agency MENA reported Saturday.
In September, Egypt’s government sold LE64 billion worth of investment certificates to Egyptians to finance the digging of a parallel waterway to the Suez Canal, which links the Mediterranean Sea to the Indian Ocean via the Red Sea.
Issued through four state-owned banks, the certificates were sold at a value of LE10, LE100 and LE1,000 at interest rate of 12 percent, distributed quarterly to owners of LE1,000 certificates and cumulative for lower-value certificates.
The National Bank of Egypt, Banque Misr, Banque du Caire, and the Suez Canal Bank, will be distributing the first yields, which represent a total sum of LE1.9 billion, throughout eight days, MENA reported.
The extension of the canal, due for completion by August 2015, is expected to increase annual revenues from the waterway to $12-13 billion over the next nine years, according to Minister of Finance Hany Kadry Demian.
The artifical waterway generated some $5.2 billion in revenues during the 2012/2013 fiscal year.