Egypt’s Ministry of Finance commenced with its plan, on Monday, to offer Treasury bills (T-bills) and bonds worth EGP 199.5bn.
This comes within a more comprehensive plan through which the government intends to borrow EGP 647.5bn from the local market, through T-bills and T-bonds. These offerings are effected by the Egyptian Government to fill the chronic deficit in the state budget, during the third quarter (Q3) of fiscal year (FY) 2020/21.
The Central Bank of Egypt (CBE), which undertakes this task on behalf of the government, will present 16 bids for T-bills worth EGP 142.5bn, and 10 bids for T-bonds worth EGP 57bn in February.
According to the plan, the offering includes: 91-day T-bills worth EGP 19bn; 182-day T-bills worth EGP 29bn; 273-day T-bills worth EGP 45bn; and 364-day T-bills worth EGP 49.5bn.
The government’s plan for February also includes offering: two-year T-bonds worth EGP 5bn; three-year T-bonds worth EGP 11.5bn; and five-year T-bonds worth EGP 15.5bn.
The Ministry of Finance will also offer seven-year T-bonds worth EGP 13.5bn, 10-year T-bonds worth EGP 10.5bn, and 15-year T-bonds worth EGP 1bn.
Banks operating in the Egyptian market are the largest sectors investing in T-bonds and T-bills, which the government issues periodically to cover the state’s general budget deficit.
These bonds and bills are offered through 15 banks that participate in the primary dealers system of the primary market. These banks, in turn, sell part of them in the secondary market, to individual investors and local and foreign institutions.