Egypt’s Ministry of Finance revealed plans to issue EGP 242.75bn worth of treasury bills and bonds in November. This comes as part of a larger plan that includes offering local debt instruments worth EGP 633.28bn to cover the budget deficit, during the second quarter of the fiscal year (FY) 2021/22 fiscal year.
According to the plan, the ministry will launch 20 T-bills auctions worth EGP 179.5bn and 19 T-bonds auctions worth EGP 63.25bn.
The plan includes five auctions for 91-day tenor T-bills worth EGP 18.5bn; five auctions for 182-day tenor T-bills worth EGP 16bn; five auctions for 273-day T-bills worth EGP 71bn; and five other bids for 364 days worth EGP 74bn.
The government’s plan also includes offering: 2-year T-bonds worth EGP 23bn; 3-year T-bonds worth EGP 19.5bn; and 5-year T-bonds worth EGP 3.25bn.
Egypt’s Ministry of Finance also plans to offer 7-year yield T-bonds worth EGP 4.5bn, and 10-year T-bonds worth EGP 5.5bn.
Nevertheless, another EGP 500m worth of 15-year T-bonds are planned for November, along with EGP 13.5bn worth of 1.5-year tenor Zero Coupon bonds.
Banks operating in the Egyptian market represent the largest sector investing in T-bonds and T-bills, which the government periodically offers to cover the state’s general budget deficit.
These T-bonds and T-bills are offered through 15 banks that participate in the primary dealers’ system in the primary market. Those banks resell part of them in the secondary market to individual investors and local and foreign institutions.
According to the Central Bank of Egypt, investments made by public sector banks in T-bills amounted to about EGP 235.968bn at the end of August 2021.
Meanwhile, investments made by specialised banks amounted to EGP 39.11bn.
Private sector banks’ investments reached about EGP 346.5bn and foreign bank branches’ investments recorded about EGP 45.5bn.
