The Central Bank of Egypt (CBE) will, on Monday, issue a tender for one-year US-dollar denominated Treasury bills (T-bills) worth $980m, due on 8 February 2022.
The proceeds of this latest bid will be used to pay the value of a previous bid, which the CBE had offered on 11 February 2020, through which it obtained $984.8m.
The last similar bid for one-year T-bills launched by the CBE took place on 5 January 2021, at a value of $850m, due on 4 January 2022.
It said that it had received 35 offers from local and international investors to cover this bid, valued at $1.051bn.
The CBE accepted only 30 offers, worth $861.1m and an interest that ranged between 3.401% as the lowest price and 3.42% as the highest price, and 3.414% as an average. It rejected other offers from investors who demanded a return of 4.1%.
The CBE allows subscriptions for T-bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
The yield of the US dollar-denominated T-bills is determined according to several indicators. The most important of these are the size of the dollar liquidity in the market, and alternative investment opportunities available to local and foreign banks and financial institutions. The country’s credit rating is also an important factor in determining the yield.