Bloomberg News

Egypt Offers $2.6 Billion in T-Bill, Bond Over the Next Week

September 15, 2011

(Updates with analyst comment in third paragraph.)

Sept. 14 (Bloomberg) -- Egypt plans to raise 15.5 billion Egyptian pounds ($2.6 billion) over the next week at auctions of government debt, the largest amount this quarter.

The Arab country’s central bank will seek bids for 2.5 billion pounds in six-month notes and 3.5 billion pounds of one- year securities tomorrow, according to Central Bank of Egypt data on Bloomberg. It plans sales of three-month and nine-month bills on Sept. 18 valued at 2 billion pounds and 3.5 billion pounds, respectively, according to the data.

The lender said earlier this week it will offer a combined 4 billion pounds in two-year and three-year fixed-rate bonds on Sept. 19.

One-year treasury bills will “conservatively” attract bis at a yield of 13.75 percent to 13.95 percent, said Ahmed Kheir Eldin, a fixed-income trader at Cairo-based Bank of Alexandria. Two-year and three-year bond yields will reach 14.2 percent and 14.5 percent, respectively, he said. “It’s very hard to expect investors to bid lower,” said Kheir Eldin. “The government is also more likely to accept this because it’s the end of the quarter and it has to meet financing requirements.”

Egyptian treasury bill yields soared last week as the government’s need for financing pushed it to accept the highest borrowing costs in almost three years. The rate on one-year securities climbed 62 basis points, or 0.62 percentage point, to 13.6 percent. The central bank, which holds the auctions on behalf of the finance ministry, canceled the sale of three-month and nine-month notes on Sept. 11.

The yield on Egypt’s 5.75 percent 10-year dollar bond due April 2020 fell three basis points to 5.41 percent at 4:20 p.m. in Cairo. The pound’s 12-month non-deliverable forwards lost 0.5 percent to 6.65 per dollar, reflecting the expectation for the currency to weaken 10 percent over that period.

--Editor: Claudia Maedler

--Editor: Claudia Maedler

--Editors: Claudia Maedler, Tim Farrand

--Editors: Claudia Maedler, Inal Ersan


To contact the reporter on this story: Ahmed A Namatalla in Cairo at

To contact the editor responsible for this story: Claudia Maedler at

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