Egypt’s Finance Ministry will issue EGP 730 billion in treasury bills and bonds in March, as part of its strategy to refinance debt and cover the budget deficit. The auctions will include various maturities and types of instruments, primarily targeting Egyptian banks as investors.
Egypt’s Finance Ministry has announced its intent to issue a total of EGP 730 billion ($14.41 billion) in treasury bills and bonds throughout March. This issuance consists of 16 treasury bill auctions valued at EGP 640 billion and 16 bond auctions worth EGP 90 billion, aimed at refinancing existing debt and addressing the state budget deficit.
The Central Bank of Egypt will facilitate this process by conducting several auctions. Specifically, four 91-day treasury bill auctions will total EGP 130 billion, with additional auctions for 182-day and 273-day bills each amounting to EGP 170 billion. Lastly, four auctions for 364-day treasury bills will also reach EGP 170 billion.
On the bond side, the ministry plans to introduce a range of instruments. Four auction rounds will offer two-year bonds totaling EGP 18 billion. The issuance will also include two three-year bond auctions worth EGP 5 billion, alongside four floating-rate three-year auctions amounting to EGP 44 billion. Furthermore, there will be a five-year bond auction totaling EGP 20 billion and two floating-rate five-year bond auctions totaling EGP 3 billion.
Egyptian banks are the primary investors in these treasury bills and bonds, which are issued regularly for budget financing. These financial instruments are distributed through 15 banks that are part of the Primary Dealers System and later sold in the secondary market to both local and international investors, which includes various institutions and individuals.
In summary, the Egyptian Ministry of Finance is set to issue substantial amounts of treasury bills and bonds in March to refinance debt and manage the budget deficit. With a structured auction plan, the focus remains on enhancing government financing through the active participation of domestic banks, ensuring liquidity in both primary and secondary markets.
Original Source: www.zawya.com
