- Tomorrow, Monday, the Central Bank of Egypt will offer a local treasury bill auction denominated in US currency worth $500 million, for a one-year term due in June 2025.
- The proceeds of this tender will be directed to pay the dues of a previous tender that was launched on June 6, 2023, through which the Central Bank withdrew $554.1 million.
- The Central Bank had received 23 offers worth $1.1176 billion from local and foreign investors in a similar bills auction offered by the bank on April 29, worth $980 million, for a one-year term due on April 29, 2025.
- According to data published by the Central Bank on its website, only 20 of those offers were accepted, worth $997 million, with interest ranging between 5.148 and 5.149%, without any change from the last similar offer offered by the bank on February 5.
- Some investors requested a return of up to 6.099% for their subscription in this tender, which was rejected.
- The Central Bank allows both local banks and foreign institutions to subscribe to these bills, with a minimum subscription of $100,000 and multiples thereof.
- Investors subscribe to dollar bills in the same manner as in local currency bill offerings, whereby each “principal dealer” bank submits a subscription request to the Central Bank, specifying the amount it will subscribe to in the bills and the interest rate it requests. The requests are collected at the Central Bank for study and acceptance of the appropriate ones.
- The return on these dollar bills is determined according to several indicators, the most important of which are interest rates on the dollar in global markets, alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.
