The Ministry of Finance intends to offer 28 bids for treasury bills and bonds worth EGP 251.5bn in September as part of a government plan that aims to borrow EGP 818bn from the local market during the first quarter (1Q) of the FY2022/23.
According to the government’s plan, the ministry intends to offer 16 bids for bills worth EGP 211.5bn and 12 bids for bond worth EGP 40bn.
The Central Bank of Egypt (CBE) — which undertakes this task on behalf of the government — will issue in September four bids for 91-day bills worth EGP 58bn, four for 182-day bills worth EGP 59bn, another four for 273-day bills worth EGP 31bn, and an additional four for 364-day bills worth EGP 63.5bn.
The plan also includes offering four Zero Coupon bonds with terms of 1.5 years worth EGP 29bn, two three-year bids worth EGP 7.5bn, and two five-year bids worth EGP 2bn.
The ministry also offers two bids for seven-year bonds worth EGP 1bn and two 10-year bonds worth EGP 500m.
The banks operating in the Egyptian market are the largest clients investing in bonds and treasury bills, which the government regularly issues 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.
The Ministry of Finance recently revealed that the volume of outstanding balances of local treasury bills and bonds reached about EGP 3.96 trillion until the end of June 2022.
According to the latest report published by the ministry on its website, the volume of outstanding balances of treasury bills until the end of June amounted to about EGP 1.518 trillion, while the volume of outstanding balances of treasury bonds amounted to about EGP 2.441 trillion, about EGP 217.026bn of which are Zero Coupon bonds.