Cairo – Mubasher: The Central Bank of Egypt (CBE) will issue treasury bonds (T-bonds) worth EGP 3 billion on Monday on behalf of the Ministry of Finance (MOF).

The issue will be used to finance the budget deficit, the CBE said.

The first tranche of T-bonds will be offered through five-year notes at EGP 1.75 billion, while the second offering will be through ten-year notes at EGP 1.25 billion, according to the CBE’s official website.

Egypt’s debt instruments, especially T-bills, are attractive to foreign investors owing to their high yield. Governmental banks are the largest holders of the debt instruments.

Egypt aims to issue EGP 409.6 billion T-bills and bonds at a value of EGP 101.6 billion in fiscal year 2018/2019.

The CBE previously indicated that Egypt’s total foreign debt increased 2.3% quarter-on-quarter, or $1.8 billion, reaching $80.8 billion in the first quarter of FY17/18.