The total outstanding balance of treasury bonds in local currency owed by the government by the end of August amounts to EGP 614.19bn.
This is besides other treasury bonds issued in US dollars in global markets, worth approximately $8.75bn, according to the Ministry of Finance.
The ministry said, in a recent report exclusively published by Daily News Egypt, that there are two types of bonds in Egyptian pounds. The first type is the coupon yield bond, which has a balance of EGP 552.9bn, and the average rate of its yield is of 13.179%.
These bonds were introduced during the period 15 November 2005 to 11 August 2015, with interest rates ranges between 8.6% and 17%.
According to the Ministry of Finance, the balances of the second type of bond, the zero-coupon bond, is up to about EGP 61.29bn, with an average interest rate of 12.007%.
Those bonds were introduced in the period between 4 March 2014 and 11 August 2015, at an interest rate ranging between 11.319% and 12.792%.
The repayment of the coupon yield bonds’ outstanding balances is scheduled in the period between 14 September 2015 and to 12 May 2025 — While the repayment of the zero-coupon bonds will be in the period between 1 September 2015 and 7 February 2017.
The Ministry of Finance also said that there are bonds worth $3bn, to be repaid on 17 December 2016. Those bonds have an average yield rate of 3.5%. This comes in addition to other bonds in global financial markets of $5.75bn, which will be repaid in the period between 15 September 2016 and 29 April 2040. Those bonds have an average yield rate of 5.141%.
The first international bonds issued by the Egyptian government date back to 27 September 2005, at $1.25bn, with an average yield of 4.45%.
Banks working in the Egyptian market are considered the biggest investors in bonds and treasury bills, which the government issues on a regular basis to cover the state budget deficit.
Those bonds and bills are issued in 15 banks (primary dealers) in the primary market. The banks then sell part of them in the secondary market to investors, and local and foreign institutions.
The list of participating banks in this system includes the National Bank of Egypt, Banque Misr, Banque du Caire, CIB, Citi Bank, HSBC-Egypt, the Misr Iran Development Bank, QNB, Crédit Agricole , Barclays-Egypt, Alexandria Intesa Sanpaolo, the Arab African International Bank, the Export Development Bank of Egypt, Suez Canal Bank, and the Arab Bank-Egypt.