The Ministry of Finance has announced that the government’s outstanding balance in local currency treasury bonds reached EGP 739.5bn by the end of May, an increase of EGP 2.02bn since April.
A recent report put out by the ministry details two types of bonds in Egyptian pounds. The first is the coupon yield bond; the balance of which is EGP 677.799bn, with an average return rate of 12.891%. These bonds were put forward from 12 February 2008 until 26 April 2016. The interest rate on these bonds ranges between 9.15% and 17%.
According to the Ministry of Finance, the balance for the second type of bond, the zero coupon bond, is approximately EGP 61.704bn, with an average interest rate of 12.222%. These bonds were set in the period between 28 January 2014 and 31 May 2016, at an interest rate ranging between 11.319% and 13.392%.
Repayment of the coupon yield bonds is scheduled for the period between 10 June 2016 and 10 November 2025. The zero coupon bonds will be paid off in the period between 12 July 2016 and 28 November 2017.
The ministry has indicated that the bonds worth $3bn will be repaid on 17 December 2016, with an average interest rate of 3.5%. Other bonds issued in global financial markets are worth $4.5bn will be repaid between 1 July 2016 and 29 April 2040, with an average interest rate of 5.333%.
Banks operating in the Egyptian market are the largest investors in treasury bonds and bills.
Those bonds and bills are processed through 15 banks, which are the primary dealers in the market. These banks resell a portion of these bills and bonds to retail investors and local and foreign institutions in the secondary market
The banks participating in the system include, the National Bank of Egypt, Banque Misr, Banque du Caire, Commercial International Bank (CIB), Citibank, HSBC Egypt, Misr Iran Development Bank, Qatar National Bank (QNB), Credit Agricole Egypt, Barclays Egypt, AlexBank Intesa SanPaolo, Intesa SanPaolo Group, Arab African International Bank, Export Development Bank of Egypt, Suez Canal Bank, and Arab Bank.