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

The first tranche of the T-bonds, worth EGP 1.25 billion, will be offered through three-year notes, while the second tranche stands at 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. State-owned banks are the largest holders of the government’s debt instruments. 

Egypt aims to slash borrowing cost through counting on Eurobond issuances instead of the country's local high-yield debt.

The finance ministry earlier announced that the government is planning to resort more to local long-term financing instruments instead of short term loans.

The Egyptian government also aims to cut the government debt to gross domestic product (GDP) ratio to 77.5% by the end of June 2022.