The total outstanding balance of treasury bonds in local currency owed by the government by the end of October amounts to EGP 644.94bn.
This is besides other treasury bonds issued in US dollars in global markets, worth approximately $7.5bn, according to the Ministry of Finance.
The ministry said in a recent report published exclusively by Daily News Egypt, that there are two types of bonds in Egyptian pounds. The first type is the coupon yield bond, which has a balance of EGP 583.15bn and an average rate of yield of 12.971%.
These bonds were introduced from 15 November 2005 to 27 October 2015, with interest rates ranges between 8.7% and 17%.
According to Minister of Finance Hany Khadry Dimian, the balances of the second type of bond, the zero-coupon bond, is up to about EGP 61.8bn with an average interest rate of 12.56%.
Those bonds were introduced from 13 May 2014 to 6 October 2015 at an interest rate ranging between 11.319% and 12.792%.
The repayment of the coupon yield bonds’ outstanding balances is scheduled between November 2015 and 12 May 2025, while the repayment of the zero-coupon bonds will be between November 2015 and 4 April 2017.
The ministry also said there are bonds worth $3bn to be repaid on 17 December 2016. Those bonds have an average interest rate of 3.5%. This comes in addition to other bonds in global financial markets of $4.5bn, which will be repaid in the period between 1 July 2016 and 29 April 2040. Those bonds have an average yield of 5.333%.
Banks working in the Egyptian market are considered the largest investors in bonds and treasury bills, which the government issues on a regular basis to cover the state budget deficit.
Those bonds and bills are issued in 15 banks – primary dealers – in the primary market. The banks then sell part of them in the secondary market to investors and local and foreign institutions.
The list of participating banks in this system include the National Bank of Egypt, Banque Misr, Banque du Caire, CIB, Citi Bank, HSBC Egypt, Misr Iran Development Bank, QNB, Crédit Agricole , Barclays Egypt, Alexandria Intesa Sanpaolo, Arab African International Bank, the Export Development Bank of Egypt, Suez Canal Bank, and Arab Bank Egypt.
