Central Bank of Egypt to issue government debt instruments worth USD1.4B
Date
1/12/2025 2:17:25 AM
(MENAFN) The Central bank of Egypt is set to issue government debt instruments, including treasury bills and bonds, worth 70.5 billion Egyptian pounds (approximately 1.4 billion U.S. dollars) over the course of two days to help finance the country’s budget deficit. This move comes as the appeal of Egyptian debt instruments has grown, with yields reaching their lowest levels in five months. The decline in yields coincides with the continued appreciation of the Egyptian pound against the U.S. dollar, according to data from the central bank.
The average yield on Egypt’s 6-month treasury bills dropped to 27.1 percent during an auction held last Thursday, marking a significant decrease from its record high of over 31 percent recorded in early December. Last December, the Monetary Policy Committee of the Central Bank of Egypt decided to keep interest rates unchanged for the sixth consecutive time. This decision aimed to preserve the attractiveness of government debt instruments, ensuring continued demand from investors.
As per data from the Central Bank of Egypt’s official website, treasury bills are being offered today, Sunday, with a value of 20 billion pounds for a 3-month term and 35 billion pounds for a 9-month term. Additionally, fixed-return bonds denominated in Egyptian pounds will be offered tomorrow, valued at 10 billion pounds for a 3-year period and 2.5 billion pounds for a 2-year period. Variable-return bonds worth 3 billion pounds will also be issued for a 3-year period.
The Central Bank of Egypt regularly conducts weekly tenders on behalf of the Ministry of Finance to manage the country’s budget deficit. The government raises funds through treasury bills and bonds with varying maturities, attracting investments primarily from government banks, which remain the largest buyers of these instruments. These tenders play a crucial role in securing short- and medium-term financing for the state.
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