In coordination with the Ministry of Finance، the Central Bank of Egypt (CBE)، is set to issue EGP 14.7 billion in treasury bills on Sunday.
The T-bills are to be offered in two installments، with the first valued at EGP 7.25 billion with a 91-day term and the second worth EGP 7.5 billion with a 273-day term.
For the current fiscal year، the budget deficit is estimated to record EGP 370 billion، planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans. Noteworthy، a Treasury bill (T-Bill) is a short-term debt obligation backed by the Treasury Dept. of the U.S. government with a maturity of less than one-year، sold in denominations of $1،000 up to a maximum purchase of $5 million. T-bills have various maturities and are issued at a discount from par، according to Investopedia.
When an investor purchases a T-Bill، the U.S. government effectively writes investors an IOU; they do not receive regular interest payments as with a coupon bond، but a T-Bill does include interest، reflected in the amount it pays when it matures.
The longer the maturity date، the higher the interest rate that the T-Bill will pay to the investor.