CBE to offer a $1bn treasury bill tender on Monday
The Central Bank of Egypt (CBE) will offer a $1bn local treasury bill tender on Monday. The proceeds of this tender will be directed to pay the maturity of a previous tender that was offered on February 6, 2024, through which CBE withdrew $1.061bn.
CBE received 29 offers worth $965m to cover a $800m local treasury bill tender, offered by the bank on December 30, 2024, for 364 days, due December 30, 2025.
According to data from CBE on its website, 20 offers worth $840m were accepted, with an interest rate of 4.25%, compared to 4.5% in the last similar tender offered by the bank on December 2.
Some investors requested a return of up to 5% in exchange for their subscription in this tender, which was rejected.
CBE allows subscription in these bills for both local banks and foreign institutions with a minimum subscription of $100,000 and multiples thereof.
Investors subscribe to the bills in dollars, in the same manner, followed in the offerings of bills in local currency, where each bank from the “principal dealers” submits a subscription request to CBE, specifying the amount it will subscribe to in the bills and the interest rate it requests, and the requests are collected at the Central Bank to study them and accept the appropriate ones.
The return on these dollar bills is determined according to several indicators, the most important of which are interest rates on the USD in global markets, alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.
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