Cairo – Mubasher: The Central Bank of Egypt (CBE) will issue treasury bonds (T-bonds) worth EGP 2.5 billion on Monday on behalf of the Ministry of Finance (MoF).

The first tranche of the T-bonds, valued at EGP 1.25 billion, will be offered through three-year notes, while the second tranche amounts to EGP 1.25 billion and will be offered through seven-year notes, the CBE said via its official website.

The issuance will be used to finance the country's budget deficit, the CBE noted.

In April, the North African nation announced raising the Eurobonds issuance volume of its international bond sale programme to $30 billion from $20 billion, according to the Luxembourg Stock Exchange’s bulletin.

In March, the finance ministry announced issuing Eurobonds worth $4 billion with maturities of five years, ten years, and 30 years.

Egypt’s debt instruments are considered attractive to foreign investors owing to their high yield. State-run banks are the largest holders of the government’s debt instruments.

The most populous Arab nation seeks to cut borrowing cost through counting on Eurobond issuances instead of the country’s high-yield local debt.