Egypt to offer 26 T-bills, bonds tenders worth EGP 185.25bn in August

The Central Bank of Egypt (CBE) will, on behalf of the Ministry of Finance, issue 26 tenders for treasury bonds (T-bonds) and bills (T-bills) worth EGP 185.25bn in August.

It comes as part of a government plan to borrow EGP 600bn from the local market during the first quarter (Q1) of fiscal year (FY) 2020/21. The auctions are also set to bridge the budget deficit.

Minister of Finance Mohamed Maait expected the budget deficit to rise to 7.8% in FY 2020/21 compared to about 6.3% in the basic scenario.

The minister also noted that debt as a percentage of GDP may reach 88% compared to 83% in the budget’s basic scenario, in the event of the continued repercussions due to the novel coronavirus (COVID-19). This would continue until the end of 2020, according to an earlier statement issued by the Ministry of Finance.

According to the government’s plan, the Ministry of Finance looks to issue 16 T-bill bids, worth EGP 154bn, alongside 10 T-bond bids worth EGP 31.25bn this August.

The validity of the T-bonds and bills on offer during August are set varied. They include: four bids for 91-day T-bills worth EGP 33bn; four bids for 182-day T-bills worth EGP 37bn; four bills for 273-day T-bills worth EGP 41bn; and four bids for 364-day T-bills worth EGP 43bn.