The Ministry of Finance has announced that the government’s outstanding balance in local currency treasury bonds reached EGP 750.1bn by the end of July, an increase of EGP 5.1bn from EGP 745bn in June.
A recent report issued by the Ministry of Finance details two types of bonds in Egyptian pounds. The first is the coupon yield bond. Its balance stands at EGP 688.9bn, with an average return rate of 12.962%. These bonds were put forward from 12 February 2008 until 5 July 2016. The interest rate on these bonds ranges between 9.15% and 17.15%.
According to the Ministry of Finance, the balance for the second type of bond, the zero coupon bond, is approximately EGP 61.204bn, with an average return rate of 12.335%. These bonds were set in the period between 28 January 2014 and 28 June 2016, at an interest rate ranging between 11.319% and 15.329%.
The payment of balances for coupon yield bonds is scheduled between 3 September 2016 and 5 July 2026, while that of zero coupon bonds will be between 9 August 2016 and 26 December 2017.
The largest investors of treasury bonds and bills are banks operating in the Egyptian market.
Treasury bonds and bills are proposed through 15 banks that are the primary dealers in the primary market. These banks resell a portion of these bills and bonds in the secondary market to retail investors, as well as local and foreign institutions.