Egypt Offers $819 Million of T-Bills After Cutting Bond Sales

Egypt will seek bids for 5.5 billion Egyptian pounds ($819 million) of treasury bills today after reducing long-term debt sales to less than 10 percent of its fund raising target.

The Arab country will offer 1.5 billion pounds of three- month notes and 4 billion pounds of nine-month securities, according to central bank data on Bloomberg. It sold similar- maturity bills last week at average yields of 12.91 percent and 13.97 percent, respectively.

The government last week redirected sales of bonds to treasury bills as Egypt’s biggest banks raised returns on pound- denominated three-year deposit certificates. State-owned National Bank of Egypt and Banque Misr increased their rates by 2 percentage points and 1 percentage point, respectively, to 12.5 percent. The Finance Ministry reduced its fundraising target from longer-term debt by 44 percent this quarter and boosted sales of three-month treasury bills by 71 percent, according to data on its website.

The moves came amid the biggest slump for the Egyptian pound in a decade. The currency was little changed at 6.7119 a dollar as of 12:07 p.m. in Cairo, according to prices compiled by Bloomberg. It has lost 7.8 percent since the central bank eased its support in December.

The yield on the government’s benchmark 5.75 percent dollar-denominated bonds due in April 2020 rose for the third week last week, adding six basis points, or 0.06 of a percentage point, to 6.62 percent.

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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