The Ministry of Finance revealed that the outstanding balance of local treasury bills (T-bills) and bonds owed by the government amounted to EGP 4.145trn in August 2022.
According to the latest report published by the ministry on its website, the value of outstanding balance of T-Bills in August amounted to about EGP 1.618trn, comprising EGP 729.032bn worth of T-bills for 364 days, EGP 244.731bn worth of T-bills for 273 days, EGP 163.327bn worth of T-bills for 182 days, and EGP 481.013bn worth of T-bills for 91 days.
According to the Ministry, the value of these bills are due in the period between 6 September 2022 and 29 August 2023, taking into account that other bills with the same tenure are re-issued on a weekly basis.
The Ministry of Finance also revealed that the outstanding balance of bonds in August reached approximately EGP 2.527trn, of which about EGP 237.391bn are “Zero Coupon” bonds.
According to the Ministry, these bonds mature between 3 September 2022 and 18 January 2037, taking into account also that other bond issuances are re-issued on a periodic weekly basis, just like the T-bills.
The figures obtained by Daily News Egypt (DNE) earlier revealed that The Egyptian government plans to borrow EGP 878.5bn from the local market through issuing securities during the second quarter (2Q) of fiscal year 2022/23, with the aim of financing the state budget deficit.
According to the government’s plan, the Ministry of Finance aims to offer 52 T-bill issuances worth of EGP 704bn, and 34 bond issuances worth of EGP 174.5bn from October to December 2022.
The Central Bank of Egypt (CBE), which undertakes this task on behalf of the government, will divide the T-bill and bond issuances on three parts: EGP 269bn issuances in October; EGP 338.5bn issuances in November; and EGP 271bn issuances in December.
According to the plan, there will be EGP 101bn worth issuances for a term of 91 days, EGP 62bn for a term of 182 days, and EGP 263.5bn for a term of 273 days, while it is scheduled to offer 364-day securities worth of EGP 277.5bn.
The Ministry of Finance has also intensified the offering of short-term bonds significantly, as it is scheduled to issue “Zero Coupon” bonds, for a period of one and a half years, at a value of EGP 75bn.
The Ministry is also scheduled to offer three-year bonds worth EGP 94.5bn, five-year bonds worth EGP 3.5bn, and seven-year bonds worth EGP 1.5bn.
The banks operating in the Egyptian market are the largest investors in bonds and treasury bills, which the government regularly issues to cover the budget deficit.
These bonds and bills are offered through 15 banks that participate in the primary dealers system in the primary market, and these banks resell part of them in the secondary market to individual investors and local and foreign institutions.
Meanwhile, the Ministry of Finance revealed the outstanding balance of Egypt’s foreign bonds in August 2022.
According to the ministry, there are dollar-denominated bonds of about $34.21bn, which were offered from 11 June 2015 to 30 September 2021, and will mature during the period from 21 February 2023 to 16 February 2061.
The interest rate on these bonds ranges between 3.875% and 8.875%, and averages 7.126%.
The Ministry indicated that there are other bonds worth €4bn, issued from 16 April 2018 to 11 April 2019, and are due from 11 April 2025 to 11 April 2031.
The return rate on these bonds ranges between 4.75% and 6.375%, and averages 5.477%.
In addition, there are other Japanese yen bonds worth about ¥60bn, equivalent to €500m, that were offered on 31 March 2022 and will mature on 31 March 2027, and the return rate was 0.85%.
