The outstanding balances of Treasury Bonds (T-Bonds) and Bills (T-Bills) owed by the government registered at EGP 2.0135tn at the end of August 2018, according to reports from the Central Bank of Egypt (CBE) and the Ministry of Finance.
According to the CBE, outstanding balances of T-bills reached EGP 1.2954tn at the end of August.
These bills have maturity periods of between 91-364 days, mostly in the range of 357-364 days.
Furthermore, the Ministry of Finance has revealed that the outstanding balances of T-bonds recorded EGP 718.1bn at the end of August. Interest rates on these bonds range from 11.4% to 18.75%, averaging 14.849%.
These bonds were offered in the period from 18 January 2005 to 7 August 2018. About EGP 17.5bn of these bonds were repaid on 8 September 2018, while the remaining balance will be paid between 25 October 2018 and 8 May 2028.
Aside from local currency bonds, an additional $18bn worth of international bonds were offered.
These bonds have maturity periods of 1-30 years, due to be repaid between 10 December 2018 and 21 February 2048, with an interest rate between 4.622 and 8.5%, and an average interest rate of 4.726%.
Moreover, another €2bn worth of bonds were offered by the Ministry of Finance on 16 April 2018 distributed over two tranches; the first of €1bn at a return of 4.75% due on 16 April 2026, while the second tranche worth €1bn bearing an interest of 5.625% due on 16 April 2030.
Figures obtained by Daily News Egypt a few days ago have reflected the government’s intention to offer more T-bills and bonds worth EGP 498.75bn between October and end of December 2018.
This includes T-bonds worth EGP 481bn and T-bills worth EGP 17.75bn.
Banks working in the Egyptian market are considered the largest investors in bonds and treasury bills, which the government issues on a regular basis to cover the state’s budget deficit.
Treasury bonds and bills are proposed through 15 banks, which are the principal 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 to local, and foreign institutions.