Egypt's ministry of finance has received applications from eight foreign and Arab banks to promote to investors a number of shariah-compliant infrastructure and service projects, a ministry official told Zawya.
The projects, according to Dr. Ahmed Hassan Al Naggar, consultant to the finance minister and executive director of the ministry's Sukuk Unit, are part of the sukuk program approved by the country's Shura Council in April.
The program attracted interest from Citibank, JP Morgan, Deutsche Bank, Standard Chartered Bank, Crédit Agricole, EFG Hermes, Abu Dhabi Islamic Bank and Dubai Islamic Bank.
"The banks have applied to the ministry of finance to be considered in helping promote underwriting for a number of substantial projects, which the Egyptian government is set on offering to local and foreign investors," Al Naggar said.
He also revealed that a shortlist of potential candidates has already been compiled. Whichever bank wins the bid will be authorized to serve as guarantor for all sukuk issued.
"The Sukuk Unit at the ministry of finance has begun preparing a list of final projects to be carried out as part of the sukuk program. This is expected to take effect by June. The unit is also holding talks with other government agencies so we can create a project roadmap before issuing sukuk funding," Al Naggar added.
Explaining that the unit will be inviting investors to subscribe to a number of infrastructure projects; including the construction of railway lines and the establishment of water desalination plants.
"The Egyptian government is expected to authorize works on approved projects by virtue of two methods; one is via the government's establishment of a private company assigned with managing the project and supervising all relevant operations and procedures ensuring its success. The other is through the sukuk campaign's establishment of a company to carry out this function," explained El Naggar.
© Zawya 2013
