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Finance Ministry to float EGP 186bn debt instruments in May - Daily News Egypt

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Finance Ministry to float EGP 186bn debt instruments in May

Government plans to offer EGP 610bn worth debt instruments in 4Q FY2020

The Ministry of Finance plans to issue treasury bills (T-Bills) and bonds (T-Bonds) of EGP 186bn in May, as part of the government plan to offer EGP 610bn worth debt instruments during the fourth quarter (4Q) of the fiscal year (FY) 2019/20 to bridge the budget deficit.

The Ministry of Finance’s plan shows that the government is targeting 16 T-Bills offerings of EGP 159bn and 8 T-Bonds offerings of EGP 27bn.

The Central Bank of Egypt (CBE), which undertakes this task on behalf of the government, will issue four offerings of 91-day T-Bills of EGP 34bn, four 182-day offerings of EGP 40bn, four 273-day offerings of EGP 42bn, and four 364-day offerings of EGP 43bn.

As for T-Bonds, the government’s plan includes two 3-year offerings of EGP 7.5bn maturing in March 2023, and two 5-year offerings of EGP 7bn due in March 2025.

Also in May, the Finance Ministry will propose two offerings of 7-year T-Bonds of EGP 6.5bn due in March 2027, and other two offerings of 10-year T-Bonds of EGP 6bn due in March 2030.

The banks operating in the Egyptian market are the largest investors in T-Bills and T-Bonds.

T-Bonds and T-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.

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