Egypt’s Ministry of Finance has revealed its intention to offer treasury bills (T-bills) and bonds (T-bonds) worth a total of EGP 247bn in June 2021.
The move comes as part of a larger plan that includes offering local debt instruments worth EGP 642.5bn during the second quarter (Q2) of 2021, (the fourth quarter (Q4) of fiscal year (FY) 2020/21).
According to the plan, the ministry intends to offer in June 20 bids for T-bills worth EGP 178bn, and 13 T-bonds bids worth EGP 69bn.
According to the plan, five bids for 91-day T-bills at a value of EGP 53.5bn will be offered, and the same for 182 days at a value of EGP 51.5bn. This is in addition to five bids for 273-day T-bills at a value of EGP 39bn, and five other bids for 364 days at a value of EGP 34bn.
The government’s plan also includes offering two-year T-bonds worth EGP 5bn, 3-year T-bonds worth EGP 14bn, and 5-year T-bonds worth EGP 19bn.
The Ministry of Finance will also offer 7-year T-bonds worth EGP 12.5bn, and 10-year T-bonds worth EGP 16.5bn.
Meanwhile, it will offer 15-year T-bonds worth EGP 500m, in addition to offering “Zero Coupon” 18 month T-bonds worth EGP 1.5bn.
Banks operating in the Egyptian market are the largest sectors investing in T-bills and T-bonds, which the government issues periodically to cover the state’s general budget deficit.
These vessels are offered through 15 banks that participate in the primary dealers system in the primary market, and these banks sell part of them in the secondary market to individual investors and local and foreign institutions.