Egypt - The Ministry of Finance has announced its plan to issue 26 tenders for treasury bills and bonds in May, with a total value of EGP 457bn. These tenders include 16 for bills worth EGP 420bn, as well as 10 bond bids worth EGP 37bn.

This strategic move is part of the government’s broader objective to secure funding from the local market during the fourth quarter of fiscal year 2023/2024. The funds will be used to cover previous debt maturities and address the state’s general budget deficit.

In May, the Central Bank of Egypt (CBE), acting on behalf of the government, will issue the following treasury bills: 91-day bills worth EGP 120bn, 182-day bills worth EGP 100bn, 273-day bills worth EGP 110bn, and 364-day bills worth EGP 90bn

Additionally, the CBE is scheduled to offer the following bonds: 546-day Zero Coupon bonds worth EGP 22bn, three-year bonds worth EGP 14bn, and five-year bonds worth EGP 1bn

As of the end of January 2024, the outstanding balances of local treasury bills and bonds stood at approximately EGP 4.966trn. Specifically, the volume of outstanding treasury bills was around EGP 2.734trn, while outstanding treasury bonds amounted to nearly EGP 2.232trn.

Egyptian banks play a pivotal role in investing in these financial instruments, which are periodically offered by the government to address the state’s budgetary needs. These bonds and bills are made available through 15 banks participating in the “primary dealers” system in the primary market. Subsequently, some of these financial institutions resell a portion of these securities in the secondary market to individual investors and both local and foreign institutions.

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