The Ministry of Finance intends to offer 35 bids for treasury bills (T-bills) and bonds worth EGP 244bn during May, as part of a government plan that aims to borrow EGP 634bn from the local market during the last quarter (4Q) of fiscal year (FY) 2021/22.
According to the government’s plan, the ministry intends to issue 20 bids for treasury bills worth EGP 213.5bn and 15 bids for treasury bonds worth EGP 30.50bn.
The Central Bank of Egypt (CBE), which is executing this task on behalf of the government, is offering five bids for 91-day bills worth EGP 67bn this month, five worth EGP 61.5bn for a term of 182 days, and another five for 273 days worth EGP 47bn, while an additional five that have a duration of 364 days are scheduled to be offered for bids worth EGP 38bn.
The plan also includes offering five Zero Coupon bonds, with terms of one-and-a-half years worth EGP 23.5bn, two three-year bids worth EGP 2.25bn, and three bids five-year bonds worth EGP 2.5bn.
The finance ministry is also offering two bids for seven-year bonds worth EGP 1.25bn and two 10-year bonds worth EGP 1bn.
The banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills, which the government periodically offers to cover the state’s general budget deficit.
These bonds and bills are offered through 15 banks that participate in the primary dealers’ system in the primary market, and these banks resell part of them in the secondary market to individual investors and local and foreign institutions.
It is worth noting that the ministry previously revealed that the volume of outstanding balances of local treasury bills and bonds reached about EGP 3.901trn in February 2022.
According to the latest report published by the ministry on its website, the volume of outstanding balances of bills amounted to about EGP 1.462trn, while the volume of outstanding balances of bonds amounted to about EGP 2.439trn.