The Central Bank of Egypt (CBE) will issue €600m in euro-denominated treasury bills on Monday, maturing in August 2026. The proceeds from this issuance will be used to repay a previous issuance worth €609.8m, launched on 13 August 2024.
In a similar auction held on 4 November 2024, the CBE received 28 bids totaling €922.8m for the same value. From these, 19 bids were accepted, amounting to €642.8m, at an interest rate of 3.5%. Some bidders had requested a yield as high as 4.20%, but these were rejected by the CBE.
The CBE first introduced euro-denominated T-bills on 28 August 2012, with an initial yield of 3.25%. Subscriptions for the new issue are open to both domestic banks and foreign institutions, with a minimum bid of €100,000 and multiples thereafter.
The subscription process follows the same procedure as for local currency T-bills, where banks submit bids with the amount and interest rate sought. The CBE then reviews the bids and accepts those that meet its criteria.
Banks in the local market rely on these euro-denominated T-bills to invest their euro liquidity in a government-backed instrument, offering an attractive return, especially given the limited alternative investment options available. These alternatives typically include occasional syndicated loans or investments in global financial markets.
