The size of outstanding balances of treasury bonds (T-bonds) owed by the government by the end of October 2017 increased by EGP 9.7bn to register EGP 677.587bn, up from EGP 667.9bn at the end of September 2017, according to the Ministry of Finance.
A recent report issued by the Ministry of Finance details two types of bonds in Egyptian pounds. The first is the coupon yield bond. Its balance stands at EGP 671.633bn at the end of October, compared to EGP 657.94bn in September, with an increase of EGP 13.7bn.
The interest rate on these bonds ranges between 9.15% and 18.75%, with an average return rate of 14.241%. These bonds were put forward from 12 February 2008 until 13 October 2017.
According to the Ministry of Finance, balances of the second type of bond, zero coupon bonds, fell to EGP 5.953bn at the end of October, down by EGP 4bn from EGP 9.95bn at the end of September.
The Zero coupon bonds were issued between 31 May and 4 October 2016, due to be paid between 28 November 2017 and 3 April 2018. The average interest rate on these bonds is between 14.259% and 16.514%, and their average yield is of 14.074%.
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.
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.
Aside from these bonds in local currency, there are more bonds on international markets worth $14bn. These bonds have maturity periods of 1-30 years, due to be repaid between 10 December 2017 and 31 January 2047, with an average interest rate of 6.514%.
The bonds were offered in the period from 29 April 2010 and 31 May 2017, with a return of 5.45-8.5 percent.