The Central Bank of Egypt (CBE) will issue, on Monday, a tender for one-year US dollar-denominated Treasury bills (T-bills), worth $850m, due on 4 January 2022.
The proceeds of this bid will be used to pay the value of a previous bid, which the CBE offered on 7 January 2020 and through which it obtained $864.9m.
The CBE’s last similar bid offering took place on 7 December 2020 at a value of $1bn, with maturity on 7 December 2021.
It said that it had received 38 offers from local and international investors, to cover this bid, valued at $1.253bn.
Of those offers, the CBE accepted only 27 offers worth $1bn, with an interest that ranged between 3.37% as the lowest price, 3.401% as the highest price, and 3.395% as an average. The CBE rejected other offers from investors who demanded a return of 4%.
The CBE allows subscriptions for these T-bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
The yield of these T-bills is determined according to several indicators, the most important of which are the size of the US dollar liquidity in the market. It is also affected by alternative investment opportunities available to local and foreign banks, as well as financial institutions, and the country’s credit rating.