The Central Bank of Egypt (CBE) received 27 offers amounting to $1.241bn to cover a local treasury bills tender denominated in US dollars. The bank offered the tender on Monday, worth $1bn for 364 days, with a maturity date set for February 3, 2026.
According to CBE data, the bank accepted 18 offers totaling $1.061bn at an interest rate of 4.25%. Some investors sought a return of up to 5.3% in exchange for their subscription in this tender, but these requests were declined.
The proceeds from this tender will be used to settle the dues of a previous tender issued on 6 February 2024, through which CBE had withdrawn $1.061bn.
CBE allows both local banks and foreign institutions to participate in these bill offerings, with a minimum subscription requirement of $100,000 and increments thereof.
Investors subscribe to the bills in USD using the same mechanism as local currency bill offerings. Each “principal dealer” bank submits a subscription request to CBE, specifying the amount they wish to subscribe to and the desired interest rate. The requests are then reviewed and selectively accepted by CBE.
The return on these USD-denominated bills is influenced by several factors, including global interest rates on the dollar, alternative investment opportunities available to both local and foreign financial institutions, and Egypt’s credit rating.
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