CAIRO – December 2, 2024: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue treasury bonds worth LE 19 billion today, December 2.
The issuance includes three tranches: the first, valued at LE 5 billion, has a two-year term, the second is worth LE 12 billion with a three-year term, and the third, a five-year floating-rate bond, is valued at LE 2 billion.
These bonds are part of the government's ongoing efforts to finance the budget deficit and refinance maturing debts.
This issuance is one component of a broader December strategy, under which the Ministry of Finance aims to raise a total of LE 751 billion through 33 treasury bill and bond tenders. Of this, LE 670 billion will be sourced from 20 treasury bill auctions, while 13 bond auctions will generate LE 81 billion. These funds are earmarked to address the state’s fiscal requirements and maintain market stability.
The December plan also includes significant issuance of short-term treasury bills across various maturities, alongside two- and three-year bonds, both fixed and floating-rate. Notably, LE 6 billion will be raised through five-year floating-rate bonds, underscoring the government’s preference for flexible financial instruments amid changing market conditions.
Banks operating in the Egyptian market remain the primary investors in these treasury instruments, serving as a cornerstone of the government’s financial strategy. Initially offered through 15 primary dealer banks, these bonds and bills are later traded in secondary markets, broadening their accessibility to both domestic and international investors.
This financial strategy highlights the government's commitment to addressing budgetary challenges while ensuring liquidity and fostering a robust debt management framework. Amidst growing economic pressures, these measures reflect an effort to stabilize fiscal operations and support broader economic recovery.
Comments
Leave a Comment