The Ministry of Finance aims to issue 22 tenders of treasury bills (T-bill) and bonds worth EGP 326.75bn in June, comprising 16 T-bill issuances worth EGP 318bn and 6 bond issuances worth EGP 8.75bn.
The ministry revealed earlier that it intends to borrow EGP 1.06275trn from the local market in the period from the beginning of April until the end of June 2023, with the aim of financing the deficit of the state’s general budget.
The Central Bank of Egypt, which undertakes this task on behalf of the government, will offer in June 4 issuances worth EGP 91bn for a period of 91 days, and the same amount for a value of EGP 65bn for a period of 182 days, and 4 other issuances with a value of EGP 69bn for a period of 273 days, and the same amount for a period of 364 days with a value of EGP 93bn.
It is also scheduled to issue 3 tenders for 3-year bonds at a value of EGP 8bn, including two bids for variable-yield bonds at a value of EGP 2bn, a bid for 5-year bonds at a value of EGP 500m, and another for a period of 7 years at a value of EGP 250m.
The banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills that the government offers periodically to cover the state budget deficit.
These bonds and bills are offered through 15 banks that participate in the system of “primary dealers” in the “primary market”, and those banks resell part of them in the “secondary market”, to individual and local and foreign institutional investors.
The Ministry of Finance revealed earlier that the volume of outstanding balances of local treasury bills and bonds had reached about EGP 4.44trn in March 2023.
According to the latest report published by the ministry on its website, the volume of outstanding balances of treasury bills amounted to about EGP 1.866trn, with about EGP 957.354bn for 364-day bills, about EGP 213.453bn for 273-day bills, and about EGP 413.617bn for 182-day bills, in addition to about EGP 282.513bn in 91-day bills.
This comes as the Ministry of Finance revealed that the volume of outstanding balances of treasury bonds at the end of March reached approximately EGP 2.433trn, of which about EGP 230.569bn are “zero coupon” bonds, and about EGP 14.64bn are variable-yield bonds that the Ministry of Finance has recently launched.
