Egyptian Finance Ministry plans EGP 388.75bn worth T-bills, bonds auctions in December

Egypt’s Finance Ministry intends to conduct 24 auctions for treasury bills and bonds (T-bills and T-bonds) worth EGP 388.75bn in December. This forms part of a broader strategy to raise EGP 1.2635trn from the domestic market in the second quarter of the fiscal year (FY) 2023/24 to cover maturing debt instruments and finance the general state budget deficit.

The Central Bank of Egypt (CBE), acting on behalf of the government, plans to hold 16 T-bills auctions totalling EGP 376bn in December, alongside 8 T-bond auctions worth EGP 12.75bn. The strategy includes offering 4 auctions for 91-day bills worth EGP 91bn, 4 auctions for 182-day bills worth EGP 79bn, 4 auctions for 273-day bills worth EGP 99bn, and 4 auctions for 364-day bills worth EGP 107bn.

Furthermore, the CBE plans to auction 6 bond auctions for 3-year bonds worth EGP 12.25bn, including two variable-yield bond tenders worth EGP 1.25bn, alongside two 5-year bond tenders worth EGP 500m.

Egypt’s domestic banks hold the largest share of treasury bonds and bills issued by the government to finance the general state budget deficit. These financial instruments are auctioned through 15 banks participating in the Primary Dealers system, who then redistribute a portion of them in the secondary market to individual and institutional investors, both domestic and foreign.

As of October 2023, the outstanding balance of local treasury bills and bonds in Egypt reached EGP 5.04trn. Treasury bills account for the majority of this outstanding balance, with EGP 2.721trn, while bonds account for EGP 2.318trn.

According to the Egyptian Finance Ministry, the T-bills breakdown is EGP 1.189 trillion for 364-day bills, 253.666bn for 273-day bills, EGP 545.969bn for 182-day bills, and EGP 732.434bn for 91-day bills.