The Central Bank of Egypt (CBE) will launch a tender, on Monday, for $1bn worth Treasury bills (T-bills) with a maturity of one year, due on 7 December 2021.
The proceeds of this bid will be used to pay the value of a previous bid put forward by the CBE on 10 December 2019, through which it obtained $1bn.
The CBE launched a similar bid on 16 November 2020, at a value of $1.56bn for a year, due on 16 November 2021.
It received 38 offers worth $1.7557bn, but accepted only 33 bids worth a total of $1.5857bn.
The interest rate accepted by the CBE ranged between 3.34% and 3.401%, with an average of 3.394%. It rejected other offers from investors who demanded a return of 4%.
At the end of last week, Minister of Finance Mohamed Maait indicated that foreign investments in Egyptian debt instruments exceed $23bn.
The CBE allows subscriptions for these bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
The yield of those dollar bills is determined according to several indicators. The most important of these are the size of dollar liquidity in the market, the alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.