The unnamed source cited by Ashraq Bloomberg said it was natural to cancel the T-bonds offers “when the return rate exceeded 25% from banks.”
Egypt canceled the offering of treasury bonds (T-bonds) worth EGP 34.5 billion ($1.12 billion) during the first half (H1) of the Fiscal Year 2023/2024 (FY23/24), due to the high returns that banks requested from investors, according to sources cited by Asharq Bloomberg.
An unnamed ministry of finance source cited by Ashraq Bloomberg said it was natural to cancel the T-bonds offers “when the return rate exceeded 25% from banks.”
During H1 of the FY23/24, the government succeeded in offering T-bonds amounting to about EGP 7 billion for terms ranging between 3 and 7 years, with an average return ranging between 23 and 25%.
Egyptian T-bond issuances plunged by 92% in the H1 of the FY23/24, compared to H1 of the FY22/23.
Egypt's issuance of government debt instruments in local currency jumped by about 59% in the H1 of FY23/24, to record up to EGP 2.7 trillion, according to Asharq Bloomberg based on data from the Central Bank of Egypt.
Egypt estimates its financing needs during the FY23/24 at EGP 2.14 trillion, of which it seeks to provide EGP 1.95 trillion through local financing through the issuance of T-bonds and bills.
Earlier in February, Minister of Finance, Mohamed Maait, revealed that the outstanding balances of local T-bonds and bills in Egypt reached approximately EGP 4.962 trillion by the end of 2023.
According to the latest report published on its official website, the outstanding balances from treasury bills amounted to around EGP 2.670 trillion. This includes about EGP 1.172 trillion for 364-day bills, approximately EGP 229.796 billion for 273-day bills, about EGP 395.297 billion for 182-day bills, and roughly EGP 872.638 billion for 91-day bills.
