Daily News Egypt

CBE secures government needs of euros through €600m treasury bills tender - Daily News Egypt

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CBE secures government needs of euros through €600m treasury bills tender

The CBE received 35 offers to cover the tender totalling €786.9m, and accepted 29 for €651.9m

The Central Bank of Egypt (CBE) offered treasury bills worth €600m on behalf of the Ministry of Finance on Monday to pay for a previous tender and cover the government’s needs of euros.

According to data obtained by Daily News Egypt, the CBE received 35 offers from local banks and foreign financial institutions to cover the tender, totalling €786.9m.

Those investors requested a return between 2.27% and 3%. The CBE only accepted 29 offers worth €651.9m at an interest rate ranging between 2.27% and 2.30%, with an average return of 2.298%.

The CBE websites shows that between 19 November 2013 and 23 August 2016, it offered six euro-denominated tenders of a total value amounting to €3.8806bn. Five of these tenders have been paid back.

The new bills are of a one-year maturity period, to be due on 22 August 2017.

The CBE allows subscription to the bills in euros for local banks and foreign institutions with a minimum subscription of €100,000 and its multiples.

Banks subscribe to bills in euros in the same manner as local currency, where each bank submits its bid to the CBE, indicating the amount with which it will subscribe in bills and the interest rate demanded. These bids are collected at the CBE for consideration and the suitable ones are accepted.

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