Egypt is planning to launch its second zero-coupon bonds worth EGP 3.164 billion next week. Egypt's Finance Ministry announced that it will be offering its second 18-month zero-coupon bonds worth EGP 3.164 billion next Monday Sept 23rd. This comes in the wake of the Egyptian finance ministry's successful attempt to raise its 18-month zero-coupon bonds at value of one billion pounds last Monday. The Finance Ministry issued last Monday its first auction to sell zero-coupon treasury bonds, in which it raised EGP 1 billion at an average yield of 10.745%, amid remarkable turnout by banks. The bond issue was covered more than three times. Yields on accepted bids ranged between 10.65% and 10.820%. A zero coupon bond is an interest-free debt security, issued at a discount rate, which will render profit at maturity when the bond is redeemed. 18-Month Zero Coupon Notes Fact Sheet Issuer: Ministry of Finance - Security Type: Zero Coupon Bonds - Issue Size: EGP 3.164 billion - Maturity: 18 month (3 coupons periods, i.e. 182×3= 546) - Central Depositary: Misr for Central Clearing, Depositary and Registry (MCDR) - Issue Date: September 23rd , 2013 - Maturity Date: March 23th, 2015 - Denomination: EGP 1000 - Minimum Bid: EGP 1000 - Bidding Style: Price basis (similar to current T-Bills auctions) - Coupon Frequency: None - Calculation Methodology: Discount Price Methodology - Days convention: Act/ 365 days - Auction Type: Multiple price auction (American Style) - Submission of bids: Trough the eligible Primary Dealers. - Settlement Date: T+1 for both primary and secondary market - Settlement Price: Percent of the face value extended to the fifth decimal for both primary and secondary market. - Redemption: Yield added to Par Value, single payment on maturity. - Secondary Market: OTC, through Primary Dealers System. - Liquidity Ratio: Will be included in the numerator. - Tax Status: 20% withholding Tax (similar to current Treasury securities).
