Egypt's central bank issues LE 14B in T-bonds Monday

CAIRO - 17 October 2022: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 14 billion in treasury bonds (T-bonds) on Monday, Oct. 17.

 

The T-bonds were offered in three installments, with the first valued at LE 6 billion with a 1.5-year term, the second worth LE 7.5 billion with a three-year term, and the third worth LE 500 million with a five-year term.

  

The government borrows through bonds and treasury bills over different periods of time, and government banks are the largest purchasers of them.

 

The Ministry of Finance intends to offer 27 bids for treasury bills and bonds worth LE 269 billion during October, as part of a government plan that aims to borrow LE 878.5 billion from the local market during the second quarter of the new fiscal year 2022/2023.

 

According to the government's plan, the Ministry of Finance intends to issue 16 bills bids worth LE 216 billion and 11 bond tenders worth LE 53 billion, during October.

 

The CBE, which undertakes this task on behalf of the government, will issue in October, four bids for 91-day bills worth LE 31 billion, and another four for 182-day bills, worth LE 19 billion, and another four for 273 days, worth LE 81 billion. Moreover, four bids for a 364-day term will be issued worth LE 85 billion.

 

Meanwhile, it will offer four zero coupon T-bond bids for a 1.5-year term worth LE 23 billion, four bids for three-year worth LE 29 million, a five-year bid with a value of LE 500 million, and two seven-year bids with a value of LE 500 million.

 

The banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills, which the government periodically offers to cover the state's general budget deficit.

 

The Ministry of Finance had revealed that the volume of outstanding balances of local treasury bills and bonds amounted to about LE 4.145 trillion until the end of August 2022.

 

According to the latest report published by the ministry on its website, the volume of outstanding balances of treasury bills until the end of August amounted to about LE 1.618  trillion, while the volume of outstanding balances of treasury bonds amounted to about LE 2.527 trillion.