Egypt central bank sells $840 mln in USD-denominated T-bills

The tender received approximately 29 bids, totalling around $965 million. The minimum yield was 4.25 percent, the maximum was five percent, and the weighted average was 4.3 percent.

The CBE accepted 20 bids, amounting to $840 billion, with the same minimum, maximum, and average yield of 4.25 percent.

This marks Egypt's sixth issuance of USD-denominated T-bills in 2024, following a sale of $1.57 billion in November.

Earlier this year, the central bank sold $850 million in T-bills in January, $1.06 billion in February, $997 million in April, and $500 million in June.

Furthermore, it sold 642.8 million euros in euro-denominated T-bills with a 364-day maturity period in November. This was the second such issuance in 2024, following the sale of 609.8 million euros in August.

Egypt is diversifying its financing strategies to reduce debt and narrow its budget deficit, aligning with its commitments under the International Monetary Fund's (IMF) $8 billion loan programme.

Last week, Prime Minister Mostafa Madbouly said Egypt repaid $38.7 billion in debts in 2024, including $7 billion in November and December.

Additionally, the country's total debt decreased by around seven percent in the fiscal year (FY) 2023/2024, falling to 89 percent of the GDP, down from 95.7 percent in FY2022/2023.

As part of its economic reform programme with the IMF, Egypt aims to reduce its gross debt-to-GDP ratio to approximately 83 percent by FY2026/2027.