Twenty-nine foreign and domestic investors offered to invest $1.25bn in the USD treasury bills (T-Bills) tender issued by the Central Bank of Egypt (CBE) on Monday.
The CBE has offered this tender, on behalf of the ministry of finance, worth $1bn for one year, due on 5 May 2020.
According to data obtained by Daily News Egypt, the CBE accepted 23 offers worth $1bn.
The interest rate accepted by the CBE in this tender was 3.85% as the lowest price, 3.9% as the highest price and 3.897% as an average against 3.67%, 3.8% and 3.797% respectively in a similar offer on 11 February 2019. Other offers made with interest up to 4.9% were declined.
The proceeds of this tender are to pay the value of a previous tender issued by the CBE on 8 May 2018, worth $1.1bn.
During 2019, the CBE floated US dollar-denominated bills through which it obtained some $1.868bn.
The CBE allows local banks and foreign institutions to subscribe to these bills with a minimum subscription of $100,000 and multiples.
The interest rate on these bills is set based on a number of indicators, such as the USD liquidity in the market, the alternative investments available for banks, and the country’s credit rating.