Egypt to sell first domestic bonds since uprising

Reuters, Monday 18 Jul 2011

Finance ministry announces it will sell LE3 billion in two-year bonds, in a shift from the short term debt sales Egypt has relied on to cover funding gaps since 25 January

Egypt's finance ministry will sell LE3 billion (US$503.8 million) in two-year bonds next week, the first domestic bonds it has offered since Egypt's political uprising erupted on 25 January.

Egypt has relied on treasury bills with a maximum maturity of one year for its borrowing needs since the uprising.

The government needs to sell LE50-55 billion in securities each month to roll over existing debt as well as meet its LE120 billion funding target from the domestic debt market, according to a Reuters estimate.

Bankers say there is some appetite in the market for longer-terms securities as banks seek to match assets with liabilities.

The bonds will be sold at an auction on 25 July for settlement the next day, the central bank said on Monday. They will mature on 26 July 2013.

The bank sold about LE48bn of treasury bills in May, LE40bn in June and LE25.5bn so far in July.

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