Egypt’s Ministry of Finance revealed it will issue 26 tenders for treasury bills (T-bills) and bonds, worth a total of EGP 196.5bn, in November 2020.
The offering comprises 16 tenders for T-bills worth EGP 158bn, and 10 tenders for bonds worth EGP 38.5bn.
The ministry’s move comes as part of a state plan, through which the government aims to borrow EGP 640bn from the local market. This will take place through the T-bills and bonds, and is set to fill the chronic deficit in the state budget during the second quarter (Q2) of fiscal year (FY) 2020/21.
According to the plan, the Central Bank of Egypt (CBE) will, on behalf of the Ministry of Finance, issue bids in November covering: four bids for 91-day T-bills at a value of EGP 33bn; four bids for 182-day T-bills worth EGP 35bn; four bids for 273-day bills worth EGP 43bn; and four bids for 364-day T-bills worth EGP 47bn.
The government’s plan also includes a bid for two-year T-bonds worth EGP 2.5bn, two three-year bids worth EGP 8bn, and two five-year bids worth EGP 11bn.
The ministry will also offer two seven-year T-bonds bids worth EGP 8.5bn, two 10-year T-bonds worth EGP 7.5bn, and a 15-year T-bond tender worth EGP 1bn.
Banks operating in the Egyptian market are the largest sector investing in T-bills and T-bonds, which the government issues periodically to cover the state’s general budget deficit.
These vessels are offered through 15 banks that participate in the primary dealers’ system in the primary market. These banks sell part of them in the secondary market to individual and institutional local and foreign investors.