The Central Bank of Egypt (CBE) attracted bids totaling $1.17bn in its latest auction of US dollar-denominated local treasury bills, significantly surpassing its initial offering.
Launched on Monday, the auction offered $950 million in one-year bills maturing on 28 April 2026. The proceeds will be used to repay a previous issuance from 30 April 2024, through which the Bank raised $997.6m.
According to data published on the CBE’s official website, the Bank accepted 20 bids worth a total of $984.9 million at an interest rate of 4.25%. Although some investors submitted bids with yields as high as 5.1%, those offers were rejected.
The CBE allows both domestic banks and foreign institutions to participate in these dollar-denominated treasury bill auctions, with a minimum subscription of $100,000 and in multiples thereof.
Subscriptions follow the same procedures as local currency treasury bills. Each primary dealer bank submits its bid to the Central Bank, indicating the desired investment amount and proposed interest rate. The CBE then reviews and accepts bids that align with its criteria.
The yield on these instruments is influenced by several factors, including global US dollar interest rates, alternative investment opportunities available to financial institutions, and Egypt’s sovereign credit rating.
