Monday, 25 September 2023 12:37 GMT

CBE Receives 21 Offers Worth $644.1M To Cover Dollar-Denominated T-Bill Issuance

(MENAFN- Daily News Egypt) The Central Bank of Egypt (CBE) received 21 offers from local and foreign investors at a value of $644.1m to cover the tender of local treasury bills denominated in the US currency.

On Monday, the Central Bank had offered this tender, at a value of $540m, for a year, due on 30 April 2024.

The proceeds of this tender will be used to pay off a previous tender that was offered on 7 June 2022, through which the Central Bank obtained $565.1m.

According to the Central Bank, 18 of the offers it received at a value of $554.1m were accepted, with interest ranging between 5.147 and 5.149%, compared to 4.899 and 4.9% on the last similar bid put forward by the bank on the first of last May, while other offers were rejected, in which the required return rate is 6.099%.

The Central Bank allows both local banks and foreign institutions to subscribe to those bills, with a minimum subscription of $100,000 and its multiples.

Investors subscribe to bills in dollars, in the same manner followed in issuances of bills in local currency, whereby each bank of the“main dealers” submits a subscription application to the Central Bank, indicating in it the amount that will be subscribed to in the bills and the interest rate that it requests, and the applications are collected at the Central Bank for study and appropriate acceptance of which.

The return of those dollar bills is determined according to several indicators, the most important of which are interest rates on the dollar in global markets, alternative investment opportunities available to local and foreign banks and financial institutions, and the country's credit rating.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.