The Central Bank of Egypt (CBE) received 31 bids worth $1.02bn for the auction of local treasury bills (T-bill) denominated in US dollars. This exceeded the initial offer of $830m scheduled to mature on 31 December 2024.
The proceeds from this auction will be used to repay a previous auction held on 3 January 2023, from which $850m was raised and matured yesterday.
Before accepting these bids, the CBE had received 20 bids worth $850m with a yield of 5.149%. Some investors sought a yield of up to 6.25% but were turned down.
Subscription to these bills is open to both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples. Investors in dollar-denominated bills follow the same process as local currency-denominated offers.
Primary dealers submit subscription requests to the CBE, specifying the amount and the interest rate they want for the bills. The Central Bank reviews and accepts appropriate requests.
The yield on these dollar-denominated bills is determined based on various factors, including global interest rates on the dollar, alternative investment opportunities for local and foreign banks and financial institutions, and the credit rating of the state.
