CBE auctions EGP 250m FRN t-bonds

By Nada Ali On Aug 5, 2024

Egypt Central Bank of Egypt's — The Central Bank of Egypt's (CBE) headquarters in the new administrative capital (CBE Photo)

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 0.7 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

CBE Central Bank of Egypt (CBE)Egypt's central bank Egypt's Ministry of Finance Egyptian Ministry of Finance Egyptian pounds floating-rate note (FRN)FRN