Bloomberg News

Egypt Offers 4 Billion Pounds in T-Bonds; Dollar Bonds Decline

March 26, 2012

Egypt will offer 4 billion Egyptian pounds ($663 million) in treasury bonds as falling yields put the nation on track to surpass its monthly fund-raising goal for the first time since last year’s revolt.

The North African country’s government will sell 2 billion pounds each of three- and five-year bonds, according to central bank data on Bloomberg. It last sold similar-maturity debt two weeks ago at average yields of 16.36 percent and 16.78 percent, respectively. The mid yield on the securities in the secondary market was at 16.075 percent and 16.525 percent, respectively.

The government is on track to meet or exceed its 51.5 billion-pound debt sale goal in March, after falling 23 percent short of the 118.5 billion pounds it targeted in the first two months of the year, according to finance ministry data. Yields had soared by more than 2 percentage points on nine-month and one-year securities since October.

The central bank on March 20 reduced the local-currency reserve requirement for banks by two percentage points to 12 percent to help “ease credit conditions in the market.”

The yield on the country’s 5.75 percent dollar bonds due in 2020 gained three basis points, or 0.03 of a percentage point, to 6.42 percent at 12:14 p.m. in Cairo, according to prices compiled by Bloomberg. The Egyptian pound lost 0.1 percent to 6.0380 a dollar.

To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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