The Egyptian government aims to issue treasury bills (T-bills) and bonds worth EGP 195.25bn during December 2021, 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 (2Q) of fiscal year (FY) 2021/22.
The plan includes 16 T-bill issuances worth EGP 144bn and 15 bond tenders worth EGP 51.25bn.
The details of the plan indicate that 4 bids for 91-day bills worth EGP 15bn, the same for 182 days, worth EGP 13bn, 4 bids for 273-day bills worth EGP 57bn, and 4 other bids for 364-day worth EGP 59bn.
The government’s plan also includes offering two-year bonds worth EGP 15bn, 3-year bonds worth EGP 19.5bn, and five-year bonds worth EGP 2.25bn.
The plan also included offering 7-year bonds worth EGP 1.75bn, 10-year bonds worth EGP 1.25bn, and 15-year bonds worth EGP 500m, in addition to offering “Zero Coupon” bonds for a period of one and a half years at a value of EGP 11bn.
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.
These bonds and bills are offered through 15 banks that participate in the primary dealers system in the primary market, and 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, the investments of public sector banks in T-bills amounted to about EGP 235.968bn by the end of August 2021, while the investments of specialized banks amounted to about EGP 39.11bn, private sector banks about EGP 346.5bn, and foreign banks’ branches about EGP 45.5bn.
