Central Bank of Egypt to issue $850m US dollar-denominated T-bills on Monday

Hossam Mounir
2 Min Read

The Central Bank of Egypt (CBE) will issue on Monday US dollar-denominated treasury bills (T-bills), worth $850m for a year, due on 2 January 2024.

The CBE uses the proceeds of this T-bills bid to pay the value of a previous bid submitted by the bank on 4 January 2022 at a value of $852.9m.

The Central Bank of Egypt had received 22 offers at a value of $1.140bn to cover a similar bid it put out on 5 December, at a value of $990m.

According to the Central Bank’s data, on its website, the bank accepted 16 of those offers at the same offering value. Interest rates ranged between 4.59% as the lowest price, 4.6% as the highest price, and 4.598% as an average. This comes after the recent rises in the interest of the dollar globally and locally.

It is noteworthy that the CBE allows subscribing to these T-bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.

Banks subscribe to the US dollar-denominated treasury bills in the same manner followed in offering the T-bills in the local currency, whereby each bank submits its bid to the CBE, indicating in it the amount that it will subscribe to in the bills and the interest rate it requests, and the bids are collected at the Central Bank for study and acceptance of the appropriate ones.

The return on these dollar bills is determined according to several indicators, the most important of which are the amount of dollar liquidity in the market, alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.

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