Egypt to offer euro-denominated bonds on Nov. 11

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Thu, 07 Nov 2019 - 03:56 GMT

FILE - CBE

FILE - CBE

CAIRO - 7 November 2019: Egypt will offer euro-denominated bonds on Nov. 11, maturing on Nov. 12,2020, according to the Central Bank of Egypt (CBE).

In August, the Central Bank of Egypt (CBE) announced selling the euro-denominated treasury bills (T-bills) with a 364-day term worth €610 million, clarifying that the average yield on T-bills recorded 1.49 percent.

According to the data, CBE received about 37 offers for the tender on Monday, for a total value of €780.1 million.

The Ministry of Finance announced earlier that it depends on diversifying sources of financing between debt instruments and local and foreign markets.

It also noted as local interest rates begin to fall, long-term financing instruments can be expanded from the domestic market, rather than short-term borrowing; this is in addition to expanding the issuance of medium and long-term bonds, instead of bills, to increase the life of debt and reduce the risk of refinancing existing indebtedness.

Egypt succeeded in reducing the government debt to GDP ratio to 90.5 percent by the end of June, compared to 98 in the same month last year.

The Egyptian government aims to reduce the government debt to GDP ratio to 82.5 percent by the end of June 2020 and to 77.5 percent by the end of June 2022.

For the current fiscal year, the budget deficit is estimated to record LE 445.1 billion, or 7.2 percent, planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.

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