CBE to offer $980m in treasury bills

CBE to offer $980m in treasury bills

The Central Bank of Egypt (CBE) is set to auction local USD-denominated treasury bills worth $980m on Monday, with a maturity date in April 2025.

The proceeds from this auction will be allocated to repay the maturity of a previous tender offered on April 30, 2023, from which the Central Bank withdrew $1.0076bn.

During the auction, the Central Bank received 28 bids from both local and foreign investors, totaling $1.196bn, covering a similar tender offered on February 5 of the same year. This earlier tender was worth $1bn and is set to mature on 4 February 2025.

According to data published on the Central Bank’s website, the bank accepted 18 bids worth $1.061bn at interest rates ranging between 5.148% and 5.149%. Interestingly, some investors requested a yield of up to 6.25%, but their participation in this tender was ultimately rejected.

The Central Bank allows subscription to these bills for both local banks and foreign institutions, with a minimum subscription amount of $100,000 and its multiples.

Investors subscribe to the dollar-denominated bills in a manner similar to local currency-denominated bills. Each primary dealer submits a subscription request to the Central Bank, specifying the intended subscription amount and the desired interest rate. The Central Bank then aggregates