Egypt: Government plans to borrow over $44bln through issuing securities locally in Q2 2022/23

Egypt: Government plans to borrow over $44bln through issuing securities locally in Q2 2022/23

The Egyptian government plans to borrow EGP 878.5bn from the local market through issuing securities during the second quarter (2Q) of fiscal year 2022/23, with the aim of financing the state budget deficit.

According to the government’s plan, the Ministry of Finance aims to offer 52 Treasury bill (T-bill) issuances worth of EGP 704bn, and 34 bond issuances worth of EGP 174.5bn from October to December 2022.

The Central Bank of Egypt (CBE), which undertakes this task on behalf of the government, will divide the T-bill and bond issuances into three parts: EGP 269bn issuances in October; EGP 338.5bn issuances in November; and EGP 271bn issuances in December.

According to the plan, there will be EGP 101bn worth issuances for a term of 91 days, EGP 62bn for a term of 182 days, and EGP 263.5bn for a term of 273 days, while it is scheduled to offer 364-day securities worth of EGP 277.5bn.

The Ministry of Finance has also intensified the offering of short-term bonds significantly, as it is scheduled to issue “Zero Coupon” bonds, for a period of one and a half years, at a value of EGP 75bn.

The Ministry is also scheduled to offer three-year bonds worth EGP 94.5bn, five-year bonds