CAIRO - 1 February 2024: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 70 billion in treasury bills (T-bills) on Thursday, February 1.
The T-bills were offered in two installments, with the first valued at LE 35 billion with a 182-day term, and the second worth LE 35 billion with a 364-day term.
The Ministry of Finance aims to issue 25 tenders for treasury bills and bonds with a total value of LE 540.25 billion during the current month of February. This includes 16 tenders for bills with a value of LE 528 billion and nine tenders for bonds with a value of LE 12.25 billion.
This comes as part of a government plan to borrow LE 1.647 trillion from the local market during the third quarter of the fiscal year 2023/2024. The purpose is to meet prior debt obligations and finance the general state budget deficit.
The Central Bank, acting on behalf of the government, will offer four tenders in February, totaling LE 140 billion, for terms of 91 days, 182 days, 273 days, and 364 days.
Additionally, two tenders for "zero-coupon" bonds will be offered for a term of 728 days, valued at LE 3 billion, and four tenders for a 3-year term, valued at LE 7 billion.
This is in addition to two tenders for "variable-yield" bonds for a 5-year term, valued at LE 1.25 billion, and one more tender for "fixed-yield" bonds for the same term, valued at LE 250 million.
The banks operating in the Egyptian market are major investors in the treasury bills and bonds regularly issued by the government to cover the general state budget deficit.
These bonds and bills are issued through 15 banks participating in the Primary Dealers System in the primary market. These banks then resell a portion of them in the secondary market to individual and institutional investors, both local and foreign.
The Ministry of Finance had previously revealed that the outstanding balances of local treasury bills and bonds had reached approximately LE 4.97 trillion by the end of November 2023.
According to the latest report published by the Ministry on its official website, the outstanding balances of treasury bills amounted to about LE 2.76 trillion. This includes around LE 1.205 trillion for 364-day bills, approximately LE 224.429 billion for 273-day bills, about LE 474.564 billion for 182-day bills, in addition to around LE 855.610 billion for 91-day bills.
Meanwhile, the Ministry of Finance disclosed that the outstanding balances of treasury bonds had reached approximately LE 2.209 trillion by the end of November. This includes about LE 83.695 billion for "zero-coupon" bonds and approximately LE 27.202 billion for variable-yield bonds.
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