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Outstanding balance of T-bills, bonds registers EGP 4.275trn in September 2022: Finance Ministry Banks operating in Egyptian market are largest investors in bonds, T-bills
The Ministry of Finance revealed that the outstanding balance of local treasury bills (T-bills) and bonds reached about EGP 4.275trn in September 2022. According to the latest report published by the ministry on its website, the outstanding balance of treasury bills in September amounted to about EGP 1.706trn, comprising EGP 747.468bn in 364-day bills, EGP 221.868bn in 273-day bills, EGP 278.095bn in 182-day bills, and EGP 458.634bn in 91-day bills. According to the Finance Ministry, the maturity of these bills extends from 4 October 2022 until 26 September 2023, taking into account that other bills with the same dates are re-issued on a periodic weekly basis. The Ministry of Finance said the outstanding balance of bonds in September reached approximately EGP 2.569trn, of which about EGP 271.368bn are "Zero Coupon" bonds. According to the Finance Ministry, the maturity of these bonds extends from 10 October 2022 to 18 January 2037, taking into account also that other bond bids are re-issued on a periodic weekly basis, just like the bills. Figures obtained by Daily News Egypt earlier revealed the government's intention to borrow EGP 878.5bn from the local market during the second quarter of the new fiscal year 2022/2023, with the aim of financing the state's general budget deficit. The banks operating in the Egyptian market are the largest sectors investing in bonds and treasury bills, which the government regularly issues to cover the state's general budget deficit. These bonds and bills are offered through 15 banks that participate in the primary dealers system in the primary market, and these banks resell part of them in the secondary market to individual investors and local and foreign institutions. In the same context, the Ministry of Finance revealed the size of the outstanding balances of Egypt's foreign bonds until the end of September 2022. According to the Finance Ministry, these balances include eurobonds amounting to about $34.21bn, which were offered from 11 June 2015 to 30 September 2021, and maturing during the period from 21 February 2023 to 16 February 2061. The interest rate on these bonds ranges between 3.875% and 8.875% and averages 7.126%. The finance indicated that there are other bonds worth €4bn, which were issued from 16 April 2018 to 11 April 2019, and are due during the period from 11 April 2025 to 11 April 2031. The yield rate on these bonds ranges between 4.75% and 6.375% and averages 5.477%. In addition to that, there are other Japanese yen bonds worth about ¥60bn, equivalent to $500m, that were offered on 31 March 2022 and mature on 31 March 2027, and the return rate is 0.85%.
