Egypt's Ministry of Finance plans to issue 28 T-bill, bond offerings worth $13.32bln in July

Egypt’s Ministry of Finance intends to issue 28 offerings of treasury bills and bonds worth EGP 251bn during July, as part of a government plan that aims to borrow EGP 818bn from the local market during the first quarter (1Q) of fiscal year (FY) 2022/23.

According to the government’s plan, the Ministry of Finance intends to issue 16 offerings of treasury bills worth EGP 211bn and 12 offerings of bonds worth EGP 40bn.

The Central Bank of Egypt, which undertakes this task on behalf of the government, will issue on 4 July 91-day T-bills worth EGP 58bn, 182-day T-bills worth EGP 59bn, and 273-day T-bills worth EGP 31bn, in addition to 4 T-bill offerings with a maturity of 364 days worth EGP 63bn.

The plan also includes offering 4 Zero Coupon bonds, with terms of one and a half years worth EGP 29bn, two 3-year bond issuances worth EGP 7.5bn, and two 5-year bond offerings worth EGP 2bn.

The Finance Ministry will also offer two bond issuances with a maturity of 7 years worth EGP 1bn, and two 10-year bond offerings worth EGP 500m.

Banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills, which the government periodically offers to cover the state’s general budget deficit.

These bonds and bills are offered through 15 banks that participate in the primary dealers system in the primary market, and these banks resell part of them in the secondary market to individual investors and local and foreign institutions.

The Ministry of Finance had revealed earlier that the volume of outstanding balances of domestic treasury bills and bonds amounted to about EGP 3.830trn until the end of May 2022.

According to the latest report published by the ministry on its website, the volume of outstanding balances of treasury bills until the end of May amounted to about EGP 1.374trn while the volume of outstanding balances of treasury bonds amounted to about EGP 2.455trn, of which about EGP 217.027bn are Zero Coupon bonds.

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