CBE receives offers worth $1.117bn for USD-denominated T-bill auction

The Central Bank of Egypt (CBE) recently received 23 offers from both local and foreign investors, totalling $1.1176bn, to cover a USD-denominated treasury bills auction.

This auction, announced by the CBE on Monday, has a total value of $980m and is set to mature on 29 April 2025.

According to data published on the CBE’s website, only 20 offers were accepted, amounting to $997m. The interest rates for these accepted offers ranged between 5.148% and 5.149%, remaining unchanged from the previous similar auction held by the bank on February 5.

Notably, some investors requested a return as high as 6.099%, but their bids were rejected.

The CBE allows subscription to these bills for both local banks and foreign institutions, with a minimum subscription amount of $100,000 and its multiples.

Investors participate in the auction using the same method as local currency bill offerings. Each “primary dealer” bank submits a subscription request to the CBE, specifying the desired amount and interest rate. The CBE evaluates these requests and accepts suitable ones.

The return on these dollar-denominated bills is determined based on various indicators, including global market interest rates, alternative investment opportunities, and the credit rating of the state.