The Central Bank of Egypt (CBE) has received offers from international and local financial institutions to invest in local treasury bills (T-bills) denominated in US currency, which were issued on Monday.
The CBE floated the $1.56bn worth T-bill tender for a year, due on 16 November 2021.
According to the CBE, it received 38 bids worth $1.755bn to cover this bid, but only 33 bids worth $1.585bn were accepted.
The return accepted by the CBE ranged between 3.34% and 3.401%, and averaged 3.394%, compared to 3.42%, 3.45%, and 3.446% in the last similar bid put forward by the CBE on 8 June 2020. The CBE rejected other offers from investors who requested a 4% return.
The proceeds of this bid will be used to pay for a previous bid put forward by the CBE on 19 November 2019, through which it obtained $1.56bn.
The CBE allows subscribing to these T-bills by both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
The return on those T-bills is determined according to several indicators, the most important of which are the size of the US dollar liquidity in the market, the alternative investment opportunities, and the country’s credit rating.