Egypt’s c. bank auctions EGP 250m FRN T-bonds

The Central Bank of Egypt (CBE) announced on Monday the issuance of 250 million Egyptian pounds worth of floating-rate note (FRN) treasury bonds. The bonds are set to mature on August 6, 2029.

The interest rate on these bonds will be calculated based on a formula: Coupon = {(Benchmark + Fixed Spread) / (1 – 20%)}. The bonds will pay interest quarterly, with an indicative spread of 35 per cent.

A floating-rate note is a debt instrument with a variable interest rate tied to a benchmark rate. They are issued by financial institutions, governments, and corporations with maturities of two-to-five years, according to Investopedia.

Attribution: CBE website

Subediting: M. S. Salama