The Ministry of Finance has announced that the government’s outstanding balance in local currency treasury bonds reached EGP 745bn by the end of June, an increase of EGP 5.5bn from EGP 739.5bn in May.
A recent report issued by the Ministry of Finance details two types of bonds in Egyptian pounds. The first is the coupon yield bond. Its balance stands at EGP 680.8bn, with an average return rate of 12.952%. These bonds were put forward from 12 February 2008 until 14 June 2016. The interest rate on these bonds ranges between 9.15% and 17%.
According to the Ministry of Finance, the balance for the second type of bond, the zero coupon bond, is approximately EGP 64.2bn, with an average interest rate of 12.323%. These bonds were set in the period between 28 January 2014 and 28 June 2016, at an interest rate ranging between 11.319% and 15.329%.
The payment of balances for coupon yield bonds is scheduled between 3 September 2016 and 10 November 2025, while that of zero coupon bonds will be between 12 July 2016 and 28 November 2017.
The Ministry of Finance said the bonds worth $3bn will be repaid on 17 December 2016, with an average interest rate of 3.5%, along with other bonds issued in global financial markets, worth $3.5bn to be repaid in the period between 17 December 2016 and 29 April 2040, with an average interest rate of 5.333%.
The Central Bank of Egypt (CBE) has repaid $1bn in bonds to Qatar, which lowered the size of government-issued US dollar bonds to $6.5bn.
The largest investors of treasury bonds and bills are banks operating in the Egyptian market.
Treasury bonds and bills are proposed through 15 banks, which are the primary dealers in the primary market. These banks resell a portion of these bills and bonds in the secondary market to retail investors, as well as local and foreign institutions.