The Central Bank of Egypt (CBE) will launch an auction on Monday to offer $1.56bn treasury bill (T-Bills). These T-Bills have a maturity of one year, due on 17 November 2020.
The proceeds of this issuance will be directed to repay the earlier T-Bills issuance launched by the CBE on 19 November 2018, valued at $1.703bn.
In June 2019, the CBE issued a similar auction of $715m worth T-Bills with one-year maturity, due on 9 June 2020.
In this tender, the CBE received 43 offers from local and foreign investors worth $970.6m, of which 24 offers were accepted for only $715m.
The interest accepted by the CBE in that auction was 3.85% as the lowest rate and 3.88% as the highest, averaging at 3.877%. Other offers with interest up to 4.5% were declined.
In 2019, the CBE issued four batches of T-Bills in US dollar, through which it received about $3.885bn.
The CBE allows subscription in those T-Bills for both local banks and foreign institutions with a minimum subscription of $100,000 and their multiples.
The yield of these issuances are controlled by several indicators, the most important of which are the US dollar liquidity in the market, alternative investment opportunities available to banks and domestic and foreign financial institutions, and credit rating of the state.