Jul 15 2013
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Egypt turns to sukuk for silo project funding
The Egyptian ministry of supply and internal trade has invited investors, analysts and foreign trade companies to take part in an undertaking aimed at creating 80 new silos for storing wheat. The invitation, launched in June, will be funded through a sukuk mechanism approved by the country's Shura Council, an official source at the ministry of finance told Zawya.
Dr. Ahmed El-Najjar, advisor to the minister of finance and chief executive of the Sukuk Unit, added that the unit received a request from the ministry of supply to implement the new silos according to the sukuk mechanism. Construction of the silos is expected to cost around EGP 3 billion (USD 434 million).
"The ministry of supply aims to use these new silos to store and preserve locally produced wheat, which is currently being stored in barns. This traditional method does not help in preserving wheat well and increases the rate of loss by about 15%," said El-Najjar.
The Sukuk Unit will soon be inviting a number of banks to promote the sukuk initiative and receive bids for the new silos project.
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