The outstanding balances from treasury bonds in local currency owed by the government recorded a value of EGP 752.66bn as of the end of September, while other bonds, issued in US dollars, are worth $6.5bn, according to the Ministry of Finance.
The ministry indicated in a recent report that there are two types of bonds in Egyptian pounds; the first being coupon yield bonds, the balance of which recorded EGP 696.46bn, with an average return rate of 13.02%. These bonds were put forward from 12 February 2008 until 6 September 2016. The interest rate on these bonds ranges between 9.15% and 17.20%.
The second type, zero coupon bonds, recorded a balance of EGP 56.20bn, with an average interest rate of 12.449%. Zero coupon bonds were proposed between 28 January 2014 and 6 September 2016. The average interest rate on these bonds is between 11.56% and 16.497%.
The payment of balances for coupon yield bonds is scheduled between 25 October 2016 and 5 July 2026, while that of zero coupon bonds are set to be paid between 4 October 2016 and 6 March 2018.
The Ministry of Finance said that it issued other bonds worth $3bn on 17 December 2013, to be repaid on 17 December 2016, with an average interest rate of 3.5%. Other bonds issued in global financial markets, worth $3.5bn, are also set to be repaid in the period between 1 June 2017 and 29 April 2040, with an average interest rate of 5.333%.
Those bonds were issued from 1 June 2012 until 11 June 2015, with an interest rate ranging between 5% and 6.875%.
Those bonds are set to be repaid as follows: $500m on 1 June 2017, $1bn on 29 April 2020, $1.5bn on 11 June 2025, and $500m on 29 April 2040.
The largest investors of treasury bonds and bills are banks operating in the Egyptian market. The government puts forward the treasury bonds and bills on a regular basis to cover the state budget deficit.
Treasury bonds and bills are proposed through 15 banks, which are the primary dealers in the primary market. These banks resell a portion of these bills and bonds in the secondary market to retail investors, as well as local and foreign institutions.
The banks participating in the system include: the National Bank of Egypt, BanqueMisr, Banque du Caire, Commercial International Bank (CIB), Citibank, HSBC Egypt, Misr Iran Development Bank, Qatar National Bank (QNB), Crédit Agricole Egypt, Barclays Egypt, AlexBank Intesa Sanpaolo, Intesa Sanpaolo Group, Arab African International Bank, Export Development Bank of Egypt, Suez Canal Bank, and Arab Bank.