The Ministry of Finance intends to offer 28 bids of treasury bills and bonds worth EGP 196bn during June, as part of a government plan that aims to borrow EGP 634bn from the local market during the last quarter of fiscal year (FY) 2021/22.
According to the government’s plan, the Ministry of Finance intends to issue 16 bids for treasury bills worth EGP 171bn and to issue 12 bids for bonds worth EGP 25bn.
The Central Bank of Egypt, which undertakes this task on behalf of the government, is dividing the 16 T-bill bids into four groups, four bids each, as follows: 91-day bills worth EGP 54bn, 182-day bills of EGP 49bn, 273-day bills worth EGP 38bn, and 364-day bills worth EGP 30bn.
The plan also includes offering four “Zero Coupon” bonds, for 1.5 years worth EGP 19bn, two 3-year bids worth EGP 2.25bn, and two other 5-year bids worth EGP 1.75bn. The Finance Ministry also offers two 7-year bonds worth EGP 1.25bn and two 10-year bonds worth EGP 750m.
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 those banks resell part of them in the secondary market to individual investors and local and foreign institutions.
