Egypt’s outstanding balances of T-bills, T-bonds reach EGP 4.961trn by September end

Hossam Mounir
4 Min Read

The outstanding balances of local treasury bills (T-bills) and bonds (T-bonds) reached approximately EGP 4.961trn by the end of September 2023, according to the latest report published on the Egyptian Ministry of Finance website. This includes EGP 2.605trn in treasury bills and EGP 2.355trn in bonds.

The report shows that the outstanding balances of T-bills included around EGP 1.189trn for 364-day bills, approximately EGP 219.611bn for 273-day bills, about EGP 564.504bn for 182-day bills, and approximately EGP 632.209bn for 91-day bills.

The ministry reported that bids for T-bills worth EGP 411.577bn were due in October, with the remaining amount to be settled between 7 November and 24 September 2024. It’s important to note that similar bills are regularly reissued weekly.

Similarly, the Ministry of Finance revealed that the outstanding balances of T-bonds reached around EGP 2.355trn by the end of September, including approximately EGP 95.027 billion of zero-coupon bonds and around EGP 28.247bn of variable-yield bonds.

In October, bond bids amounted to EGP 77.321bn, with the remaining value scheduled for settlement between 2 November and 18 January 2037. Like treasury bills, bond auctions are also periodically conducted weekly.

Under the government’s plan, which was obtained by Daily News Egypt, the Ministry of Finance aims to issue 52 treasury bill tenders worth EGP 1.186trn and 26 bond tenders worth EGP 41.5bn from 1 October to the end of December 2023. This reflects the government’s need for short-term liquidity.

Egyptian banks operating in the market are the largest investors in treasury bonds and bills regularly issued by the government to cover the general state budget deficit.

These securities are offered through 15 banks participating in the Primary Dealers System in the primary market, with these banks reselling a portion of them in the secondary market to individual and institutional investors, both local and foreign.

Outstanding balances of Egypt’s external bonds

In a related context, the Ministry of Finance disclosed the outstanding balances of Egypt’s external bonds until the end of September 2023.

According to the ministry, there are USD-denominated T-Bonds with a value of around $34.46bn, issued between 11 June 2015, and 30 September 2021. These bonds are due between 20 November 2023, and 16 February 2061, with interest rates ranging between 3.875% and 10.875%, and an average of 7.345%.

These balances also include bonds worth $1.5bn issued on 28 February 2023, due on 28 February 2026, with a yield of 10.875%.

Additionally, there are other bonds worth €4bn, issued between 16 April 2018, and 11 April 2019, due between 11 April 2025, and 11 April 2031, with yields ranging between 4.75% and 6.375% and an average of 5.477%.

Furthermore, there are bonds denominated in JPY with a value of around ¥60bn, equivalent to $500m, issued on 31 March 2022, and due on 31 March 2027, with a yield of 0.85%.

Egypt successfully launched its second issuance of Samurai bonds in early November, with a value of ¥75bn, equivalent to approximately $500m, with a maturity of 5 years and an annual yield of 1.5%.

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