Bloomberg News

Egypt Offers $740 Million in T-Bills as Qatar Boost Reserves

August 12, 2012

Egypt will offer 4.5 billion Egyptian pounds ($740 million) of treasury bills today after securing $2 billion from Qatar to help boost reserves that fell to a record low in July.

The North African country will sell three- and nine-month securities valued at 1 billion pounds and 3.5 billion pounds, respectively, according to central bank data on Bloomberg. The average yield on nine-month notes rose for the first time in six auctions last week, gaining six basis points, or 0.06 of a percentage point, to 15.71 percent. The three-month yield was little changed at 14.19 percent.

Qatar, the world’s richest country based on per-capita income, agreed to deposit the funds with the central bank, Egyptian Presidential spokesman Yasser Ali said yesterday. Foreign reserves tumbled by $1.1 billion last month to $14.4 billion, the lowest level since Bloomberg started tracking them in 2004.

Today’s sales are part of a Finance Ministry plan to raise a record 175 billion pounds in the three months that end Sept. 30.

The yield on the nation’s 5.75 percent dollar bonds due in 2020 advanced two basis points to 6.21 percent on Aug. 10. That’s still near the lowest level since November. The pound was little changed at 6.0841 a dollar.

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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