The Clap
The Central Bank of Egypt (CBE) will issue $850mn in USD denominated T-bills that will last for one year, due on Jan 2, 2024.
Claps Class
T-bills are debt instruments issued by the government that typically have a duration of less than one year. This instrument is utilized by governments in order to raise funds for a certain purpose.
What
The T-bills will give interest in the range of 4.59% – 4.6% annually, after recent interest rate hikes both globally and locally.
The proceeds from the T-bills will be used to pay off the value of the previous bid for USD denominated T-bills on Jan 4, 2022, of around $852.9mn.
So What
The CBE will allow both local banks and foreign institutions to subscribe to the T-bills, with a minimum subscription of $100,000.
Now What
The interest return will be determined by several factors such as USD liquidity in the market, other investment opportunities, and Egypt’s credit rating.
