The size of outstanding balances of treasury bonds (T-bonds) owed by the government by the end of June 2017 declined by EGP 5.618bn to reach EGP 677.459bn, down from EGP 683.078bn in May 2017, according to the Ministry of Finance.
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 660.051bn, with an average return rate of 14.275%. These bonds were put forward from 12 February 2008 until 13 June 2017. The interest rate on these bonds ranges between 9.15% and 18.75%.
According to the Ministry of Finance, balances of the second type of bond, zero coupon bonds, are almost up to about EGP 17.4bn, and their average yield is of 13.447%.
Zero coupon bonds were issued between 12 January and 4 October 2016. The average interest rate on these bonds is between 10.885% and 16.514%.
The ministry indicated that the repayment for the coupon yield bonds will take place between 5 August 2017 and 9 May 2027. The zero coupon bonds will be repaid between 11 July 2017 until 3 April 2018.
Banks working in the Egyptian market are considered the biggest investors in bonds and treasury bills, which the government issues on a regular basis to cover the state budget deficit.
Treasury bonds and bills are posed through 15 banks, which 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.
Aside from these bonds in local currency, there are more bonds on international markets worth $14bn. These bonds have maturity periods of 1-30 years, due to be repaid between 10 December 2017 and 31 January 2047, with an average interest rate of 6.514%.
Between 10 November 2016 and 31 May 2017, the Ministry of Finance has offered bonds on international markets worth $10bn, including $3bn in May 2017, $3bn in January 2017, $4bn in November 2016, and an additional four offerings between April 2010 and June 2015.