The Central Bank of Egypt (CBE) has received 28 offers worth €781.7m for its Euro-denominated treasury bills (T-bills) tender, which was launched on behalf of the Ministry of Finance. The tender had a value of €645m and a maturity of one year, ending on 5 November 2024. The funds raised will be used to repay a previous tender that matured on 8 November 2022, with a value of €695m.
According to the CBE’s website, 19 offers from local and foreign investors were accepted, while some bids with higher interest rates were rejected. The CBE offered a yield range of 3.999% to 4% for the accepted offers, the same as the previous similar tender that was issued on 14 August 2023, with a value of €600m.
The CBE started issuing Euro-denominated T-bills on 28 August 2012, with an initial yield of 3.25%. The minimum subscription limit for these T-bills is €100,000 and its multiples, and they are open to both local banks and foreign institutions. Banks submit their bids to the CBE, indicating the amount and the interest rate they request, and the CBE selects the suitable ones.
These T-bills provide an attractive investment opportunity for banks that have excess liquidity in euros, as they are guaranteed by the government and offer a decent return. Other options for investing in euros are scarce, except for occasional syndicated loans or global financial markets.
