CAIRO - 5 September 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, September 5.
The T-bonds were offered in three installments, with the first valued at LE 7.5 billion with a 1.5-year term, the second worth LE 3 billion with a three-year term, and the third worth LE 1 billion 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 28 bids for treasury bills and bonds worth LE 251.5 billion during September, 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 16 bills bids worth LE 211.5 billion and 12 bond tenders worth LE 40 billion.
The CBE, which undertakes this task on behalf of the government, will issue in September, four bids for 91-day bills worth LE 58 billion, and another five for 273-day bills, worth LE 31 billion, and another four for 364 days, worth LE 63.5 billion.
Meanwhile, it will offer two T-bond bids for a 7-year term worth LE 1 billion, and two bids for 10-year 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 3.960 trillion until the end of June 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 June amounted to about LE 1.518 trillion; LE 844.599 billion out of which was in 364-day bills, LE 307.113 billion was offered in 273-day bills, and LE 122.625 billion in 182-day bills, in addition to LE 244.320 billion in 91-day bills.