The Egyptian Ministry of Finance reported that the total value of outstanding Treasury bills (T-bills) and treasury bonds (T-bonds) reached approximately EGP 4.966trn by the end of January 2024.
According to the latest report published on its website, the ministry stated that the balance of existing Treasury bills amounted to about EGP 2.734trn. This includes about EGP 1.149trn for 364-day bills, approximately EGP 288.028bn for 273-day bills, and approximately EGP 283.774bn for 182-day bills, in addition to about EGP 1.021trn for 91-day bills.
The Finance Ministry explained that auctions for T-bills worth EGP 601.077bn are due in February of the current year, while the remaining value is due between 5 March 2024, and 31 December 2024. It’s noteworthy that other bills with the same terms are periodically re-auctioned on a weekly basis.
This comes as the Egyptian Ministry of Finance also revealed that the balance of existing T-bonds reached around EGP 2.232trn by the end of January 2024. Of this, about EGP 70.577bn are zero-coupon bonds and around EGP 13.938bn are variable-yield bonds.
Furthermore, auctions for T-bonds worth EGP 14.036bn are due in February of the current year, while the remaining value is due between 9 April 2024, and 18 January 2037. Similar to T-bills, T-bonds are also periodically re-auctioned on a weekly basis.
The banks operating in the Egyptian market are the largest investors in Treasury bonds and bills regularly issued by the government to cover the general state budget deficit.
These bonds and bills are offered through 15 banks participating in the Primary Dealers System in the primary market, and these banks resell a portion of them in the secondary market to individual and institutional investors, both local and foreign.
It is worth mentioning that the Ministry of Finance had announced the government’s intention to borrow EGP 1.647trn from the local market during the third quarter of the fiscal year 2023/2024 to repay previous debt obligations and finance the general state budget deficit.
In the same context, the Ministry of Finance revealed the balance of existing external bonds for Egypt until the end of January 2024.
According to the Ministry, there are USD-denominated bonds worth approximately $33.96bn, issued between 11 June 2015, and 28 February 2023, maturing between 1 March 2024, and 16 February 2061, with interest rates ranging between 3.875% and 10.875%, with an average of 7.386%.
These balances include bonds worth $1.5bn for a 3-year term, maturing on 28 February 2026, with a yield of 10.875%, in addition to green bonds worth $750m for a 5-year term, maturing on 6 October 2025, with a yield of 5.25%.
Furthermore, there are other bonds worth €4bn, issued between 16 April 2018, and 11 April 2019, maturing between 11 April 2025, and 11 April 2031, with interest rates ranging between 4.75% and 6.375%, with an average of 5.477%.
Additionally, there are bonds denominated in Japanese yen worth approximately JPY 60bn, equivalent to $500m, issued on 31 March 2022, for a 5-year term, maturing on 31 March 2027, with a yield of 0.85%, along with other bonds denominated in Chinese yuan worth approximately CNY 3.5bn, equivalent to $500m, issued on 16 October 2023, for a 3-year term, maturing on 16 October 2026, with a yield of 3.510%.
Egypt succeeded in November 2023 in issuing the second tranche of Samurai bonds worth JPY 75bn, equivalent to about $500m, for a 5-year term with a yield of 1.5% annually.
