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Outstanding T-Bond balance falls by EGP 13.592bn: finance ministry - Daily News Egypt

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Outstanding T-Bond balance falls by EGP 13.592bn: finance ministry

EGP-denominated bonds amount to EGP 712.68bn, next to $11.5bn on foreign markets 

The outstanding balances from treasury bonds in local currency owed by the government recorded a decline of EGP 13.592bn at the end of February, falling from EGP 726.274bn in January to EGP 712.682, according to the Ministry of Finance.

The Egyptian government used to issue two types of bonds in Egyptian pounds; the first being coupon yield bonds, the balance of which recorded EGP 677.774bn, with an average return rate of 14.205%.

These bonds were put forward from 12 February 2008 until 6 September 2016. The interest rate on it ranges between 9.15% and 17.20%, with maturity periods ranging between 3 to 10 years.

The second type, zero coupon bonds, recorded a balance of EGP 34.908bn, with an average interest rate of 12.675%. Zero coupon bonds were issued between 8 September 2015 and 4 October 2016. The average interest rate on these bonds is between 11.822% and 16.514%, maturing in 18 months.

15 banks are participating in the system of the treasury bonds: the National Bank of Egypt, Banque Misr, Banque du Caire, 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.

The balances of T-bonds on foreign markets rose to $11.5bn until the end of February. These bonds have maturity periods of 1-30 years, due to be repaid between 1 June 2017 and 31 January 2047, with an average interest rate of 6.416%.

The finance ministry has, in January, promoted three offerings of bonds, through which it attracted $4bn. It has also proposed, on November 2016, three offerings worth $4bn on the London Stock Exchange.

The ministry had also posed a $500m bond offering on 1 June 2012, yielding 5% and due on 1 June 2017, besides one offering worth $1.5bn that was posed in 11 June 2015, with yields of 5.875% and due to be repaid on 11 June 2025.

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