CBE issues LE 1.75B in T-bonds Monday

CAIRO – 27 May 2018: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 1.75 billion in treasury bonds on Monday, May 27.

The T-bonds were offered in two installments, with the first valued at LE 750 million with a seven-year term and the second worth LE 1 billion with a three-year term.

The Ministry of Finance announced eariler that during May, it will auction three-year treasury bonds (maturing in January 2023) worth LE 2 billion, five-year bonds (maturing in April 2024) worth LE 2 billion, seven-year bonds (maturing in April 2026) for LE 1.5 billion, and ten -year bonds (maturing in May 2029) at LE 1.5 billion.

During the fourth quarter of fiscal year 2018/2019, the ministry will auction treasury bills and bonds at a total value of LE 478.5 billion.

The ministry said it will auction three-year treasury bonds (maturing in January 2023) worth 4.75 billion, three-year bonds (maturing in June 2022)worth LE 2 billion, five-year bonds (maturing in April 2024) for LE 5.75 billion, and seven-year bonds (maturing in April 2026) at LE 5 billion. It will also auction 10-year t-bonds (maturing in November 2027) at a total value of LE 1.5 billion, and 10-year t-bonds (maturing in May 2029) at LE 2.75 billion.

The Monetary Policy Committee of the Central Bank of Egypt (CBE) kept the overnight deposit rate and the overnight lending rate at 15.75 percent and 16.75 percent, respectively, during March meeting.

Egypt has lately conducted modifications on the bonds market started by modifying the treasury bills and bonds treatments, and followed by allowing companies to offer short-term bonds.

During December, The Financial Regulatory Authority (FRA) issued a decree allowing companies to offer and issue short-term bonds.

According to the decree, these companies included joint stock companies and shareholding companies, as well as companies authorized to engage in a non-bank financial activity after getting the authority’s approval, with banks subject to the Central Bank’s approval.

Meanwhile, Egypt conducted financial treatments of treasury bills and bonds’ taxes. Minister of Finance Mohamed Ma’it revealed that the reason behind the financial treatments of T-bills’ taxes is that it is one of the rights of the treasury.

In 2018, Egypt canceled bids for treasury bills four times, each worth LE 3.5 billion, amid calls to raise its interest rates.