The Ministry of Finance will issue treasury bills (T-Bills) and bonds worth a total of EGP 238bn in June, as part of wider government plans to issue EGP 610bn worth debt instruments between April and June 2020.
The plan includes 20 T-Bill offerings worth EGP 203bn and 10 bond offerings of EGP 34bn.
The Central Bank of Egypt (CBE), which is handling the task on behalf of the government, will issue a range of bills and bonds. These include five 91-day T-Bills at a value of EGP 45bn, five bids for 182-day T-Bills worth EGP 51bn, five bids for 273-day T-Bills worth EGP 53.5bn, and five bids for 364-day T-Bills worth EGP 54bn.
The plan also includes two three-year bond offerings due in March 2023, worth EGP 7.5bn, and three five-year bond offerings due in March 2025, worth EGP 10.5bn.
The Ministry of Finance will also offer two seven-year bond offerings worth EGP 6.5bn due in March 2027, and three 10-year bond offerings due in March 2030 worth EGP 9.5bn.
In a previous statement, the ministry had indicated a possible reduction in accepted quantities of local currency bids for public treasury bills and bonds until the end of the current fiscal year 2019/2020. It also indicated its willingness to diversify funding sources, to reduce the cost of borrowing.
Banks operating in the Egyptian market represents the largest sector investing in treasury bonds and bills, which the government periodically offers to cover the state’s public budget deficit.
These bonds and bills are issued through 15 banks that participate in the system of “primary dealers” in the “primary market”, with those banks reselling part of it to investors on the “secondary market”.