The Ministry of Finance reported that the total value of local treasury bills and bonds reached about EGP 5.04trn in October 2023. According to its latest report, the treasury bills accounted for about EGP 2.721trn, while the treasury bonds accounted for about EGP 2.318trn.
The report also showed that the government plans to borrow EGP 1.2635trn from the local market during the second quarter of the fiscal year 2023/2024 to cover previous debt obligations and finance the budget deficit. The Ministry of Finance aims to issue 52 tenders for bills worth EGP 1.186trn and 26 tenders for bonds worth EGP 41.5bn from October to December 2023.
Banks operating in the Egyptian market are the main investors in treasury bills and bonds, which are offered through 15 banks participating in the Primary Dealers System. These banks resell part of them in the secondary market to individual and institutional investors, both local and foreign.
Meanwhile, the Ministry of Finance revealed the outstanding balance of Egypt’s external bonds at the end of October 2023. According to the Ministry, the external bonds are denominated in US dollars, euros, Japanese yen, Chinese yuan, and Islamic sukuk. The total value of the external bonds is about $40.71bn, €4bn, ¥135bn, and CNY 3.5bn. The external bonds have different maturity dates, ranging from November 2023 to February 2061, and different interest rates, ranging from 0.85% to 10.875%.
Egypt launched its second issuance of Samurai bonds worth ¥75bn, equivalent to about $500m, with a term of 5 years and an annual return of 1.5%, at the beginning of November.