Egypt’s Ministry of Finance has revealed its intention to offer Treasury bills (T-bills) and T-bonds worth a total of EGP 198bn during May.
The offering comes as part of a larger plan that includes local debt instruments worth EGP 642.5bn, which will take place during the second quarter (Q2) or Q4 of fiscal year (FY) 2020/21.
According to the Ministry of Finance’s plan, it intends to issue 16 offerings for T-bills worth EGP 142bn, and to issue 11 T-bonds offerings worth EGP 56bn during the month of May.
According to the plan: four offerings for 91-day T-bills at a value of EGP 43bn will be issued; four T-bills issuances will be offered at 182-day at a value of EGP 41bn; in addition to four offerings for 273-day worth EGP 31bn, and four others for 364-day at a value of EGP 27bn.
The Egyptian Government’s plan also includes two-year T-bonds offering worth EGP 5bn, three-year T-bonds worth EGP 13.5bn, and five-year T-bonds worth EGP 12.5bn.
The Ministry of Finance will also offer seven-year T-bonds worth EGP 12.5bn and 10-year T-bonds worth EGP 10.5bn.
The ministry is also offering 15-year T-bonds worth EGP 500m in addition to offering Zero Coupon T-bonds for a year and a half worth EGP 1.5bn.
Banks operating in the Egyptian market are the largest sectors investing in T-bonds and bills, which the government issues periodically to cover the state’s general budget deficit.
These T-bonds and T-bills are offered through 15 banks that participate in the primary dealers system in the primary market. These banks resell part of their holdings in the secondary market, to individual investors and local and foreign institutions.