Egypt accepts LE5.8B from selling T-bonds, revealing positive results: Min.

CAIRO – 24 September 2019: Egypt accepted Monday, Sept. 23 about LE 5.8 billion from selling treasury bonds (T-bonds) in local currency, marking an increase of LE 3.3 billion from the target value, according to Ministry of Finance.

The ministry clarified that the bids exceeded the target value of the 5-year term bonds by 4.2 times and exceeded the target value of the 10-year term bonds by 3 times.

CBE, on behalf of the Ministry of Finance, issuedLE 2.5 billion in treasury bonds on Sep. 23. The T-bonds were offered in two installments, with the first valued at LE 1.25 billion with a five-year term and the second worth LE 1.25 billion with a 10-year term
The total offers received by the Ministry of Finance reached about LE 9 billion, with an interest rate less than 14.5 percent.

The results of the bond issuance exceeded the expectations of the experts, reflecting a number of positive indicators, the most important of which is receiving offers from foreign investors to buy Egyptian bonds with ten-year terms, the Finance Ministry said in a statement on Sep. 24.

The statement added that this reflects the confidence of foreign investors in the stability and strength of the Egyptian economy and the success of the comprehensive economic and social reform program implemented by the Egyptian government.

The ministry pointed out that the success of the offering also reflects the positive outlook Egypt enjoys with international, regional and local investment funds and banks and the positive outlook for the future performance of the Egyptian economy.

According to the ministry, the public debt is already declining; the ratio of government debt to GDP has dropped from 108 percent at the end of June 2017, to 90.2 percent in June 2019.

Furthermore, the statement pointed out that the ministry targets rates of 83 percent by the end of June 2020, and 77.5 percent by the end of June 2022, with the extension of the average of maturity to be 4 years during the current fiscal year, and 5 years in the coming periods.