Egypt's CBE sells €642.8 mln euro-denominated T-Bills

The tender received approximately 28 bids totalling around €922.8 million, with a minimum yield of 3.5 percent, a maximum yield of 4.2 percent, and a weighted average yield of 3.690 percent.

The 19 accepted bids amounted to €642.8 million, maintaining the same minimum, maximum and weighted average yield of 3.5 percent.

This marks the second issuance of euro-denominated T-bills in Egypt this year, following an earlier sale of €609.8 million in August 2024.

The CBE auctioned €645 million in T-bills in November 2023, following a €600 million issuance in August 2023.

Furthermore, the bank issued with a $990 million  in USD-denominated T-bills in November 2023, followed by $1.61 billion in December 2023, and $830 million in January 2024.

Egypt has a plan to diversify its financing tools with an aim to lower debt level and narrow the budget deficit in line with its commitments to the International Monetary Fund (IMF) under the current $8 billion loan programme.

Egypt's total debt decreased by about seven percent in FY2023/2024, reaching 89 percent of GDP, down from 95.70 percent in FY2022/2023.

Finance Minister Ahmed Kouchouk reported that the external debt of budget sectors fell by approximately $4 billion over the past year.

The country aims to lower the gross debt-to-GDP ratio to around 83 percent by FY2026/2027 as one of its key targets under the current $8 billion loan-economic reform deal with the International Monetary Fund.

The fourth review of the loan programme is scheduled to take place on Tuesday.