The National Bank of Egypt (NBE), Banque Misr, and Banque Du Caire launched a new bond programme this week specifically targeting Egyptians living abroad in an attempt to bolster its foreign currency reserves, a major banking source told Daily News Egypt.
The source said the bond certificates will be launched under the name “Bilady” (My country) and will have maturation terms of three and five years. The purchase and payment of bonds will be conducted in US dollars. According to the source, the yield rates will range from 3.5% to 5%.
Public banks plan to launch the bond certificates soon and are currently revising the final details. According to the data, the purchase of these certificates will be limited to only Egyptians working abroad and they cannot be traded in the local market.
The NBE, Banque Misr, and Banque Du Caire are scheduled to promote these certificates in a number of Arab and foreign countries, especially in the Arabian Gulf where there are many Egyptian migrant workers. This initiative will be taken in cooperation with the Ministry of Immigration and Foreign Affairs of Egyptians abroad.
Minister of Immigration and Expatriate Affairs Nabila Makram said a press conference will be held in the upcoming week to announce the bond certificates in cooperation with the Central Bank of Egypt and representatives of the NBE, Banque du Caire, and Banque Misr.
She told Daily News Egypt earlier she will tour a number of countries to promote the certificates and ask Egyptians abroad to help their nation with the foreign currency reserve shortage. A Facebook page is now under construction to communicate with Egyptians abroad and provide them with all the necessary information.
Director General of the Treasury of the Industrial Development and Workers Bank of Egypt Haitham Abdel Fattah and head of treasury at a foreign bank operating in Egypt Tamer Youssef said the success of these certificates is contingent upon their promotion. Both agreed that a study should be conducted on global markets where Egyptians tend to invest to study the revenue rates there before launching the certificates amid competition.
While initially reviewing three scenarios, the CBE chose to issue bond certificates in US dollars for terms of one, three, or five years with transactions conducted in US dollars.
