Egypt’s Ministry of Finance will, on Monday, start implementing a plan to issue EGP 248.5bn in Treasury bills (T-bills) and bonds during March 2021.
This comes as part of a more comprehensive plan through which the government intends to borrow EGP 647.5bn from the local market, through T-bills and T-bonds. It aims 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, proposes in March to issue 20 bids for T-bills worth EGP 183bn and 12 bids for T-bonds worth EGP 65.5bn.
According to the plan, 91-day T-bills worth EGP 56.5bn will be offered, along with 182-day T-bills worth EGP 51.5bn, 273-day T-bills worth EGP 38.5bn, and 364-day T-bills worth EGP 36.5bn.
The government’s plan for March also includes offering two-year bonds worth EGP 5bn, 3-year bonds worth EGP 15.5bn, and 5-year bonds worth EGP 13bn.
The Ministry of Finance will also offer 7-year bonds worth EGP 20.5bn, 10-year bonds worth EGP 10.5bn, and 15-year bonds worth EGP 1bn.
The banks operating in the Egyptian market are the largest sectors investing in T-bills and bonds, which the government issues periodically to cover the state’s general budget deficit.
These instruments are offered through 15 banks that participate in the primary dealers system in the primary market.These banks sell part of them in the secondary market, to individual investors and local and foreign institutions.