CAIRO - 29 August 2022: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 11.5 billion in treasury bonds (T-bonds) on Monday, August 29.
The T-bonds were offered in three installments, with the first valued at LE 7 billion with a 1.5-year term, and the second worth LE 4 billion with a three-year term. The third worth LE 500 million with a seven-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 35 bids for treasury bills and bonds worth LE 315.5 billion during August, as part of a government plan that aims to borrow LE 818 billion from the local market during the first quarter of the new fiscal year 2022/2023.
According to the government's plan, the Ministry of Finance intends to issue 20 bills bids worth LE 264 billion and 15 bond tenders worth LE 51.5 billion.
The CBE, which undertakes this task on behalf of the government, will issue in August, five bids for 91-day bills worth LE 72 billion, and another five for 182-day bills, worth LE 74 billion, and another for 273 days, worth LE 38.5 billion.
Meanwhile, five bids for 364-day bills, worth LE 79.5 billion, are scheduled to be issued.
The plan also includes offering five “Zero Coupon” bonds with terms of 1.5 years worth LE 36 billion, three bids for three years, worth LE 11.5 billion, and two 5-year bids worth LE 2 billion.
The Finance Ministry also offers three 7-year bonds bids worth LE 1.5 billion, and two 10-year bonds worth 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 3.830 trillion until the end of May 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 May amounted to about LE 1.374 trillion; LE 858.77 billion out of which was in 364-day bills, LE 313.880 billion was offered in 273-day bills, and LE 115.252 billion in 182-day bills, in addition to LE 86.627 billion in 91-day bills.