Egypt: Ministry of Finance to issue $10.41bln in T-bills, bonds in September

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The Egyptian Ministry of Finance plans to issue 26 treasury bills and bond offerings worth EGP 506.5bn in September. This includes 16 treasury bill offerings totalling EGP 480bn and 10 bond offerings valued at EGP 26.5bn.

The Central Bank of Egypt (CBE), acting on behalf of the government, will oversee the issuance. The plan includes four treasury bill offerings worth EGP 150bn for 91 days, four offerings worth EGP 130bn for 182 days, another four offerings amounting to EGP 90bn for 273 days, and four more worth EGP 110bn for 364 days.

Additionally, the ministry plans to issue two bond offerings with a two-year maturity worth EGP 2bn, two floating rate bonds with a three-year maturity worth EGP 4bn, four fixed-rate bond offerings with a three-year maturity totalling EGP 20bn, and two bond offerings with a five-year maturity amounting to EGP 500 million.

Banks operating in the Egyptian market are the primary investors in these treasury bills and bonds, which are regularly issued by the government to cover the state budget deficit. These securities are issued through 15 banks participating in the Primary Dealers system in the primary market. These banks then resell a portion of these securities in the secondary market to individual and institutional investors, both local and foreign.

Previously, the Ministry of Finance revealed that the outstanding balance of local treasury bills and bonds reached approximately EGP 4.966trn in January 2024. According to the latest report published by the ministry, the outstanding balance of treasury bills amounted to approximately EGP 2.734trn, while the outstanding balance of treasury bonds was around EGP 2.232trn.