Egypt’s CBE auctions 2.5b fixed coupon T-Bonds

The Central Bank of Egypt (CBE) offered on Monday treasury bonds (T-Bonds) with fixed coupon in Egyptian pound worth 2.5 billion pounds, in coordination with the Ministry of Finance, according to a statement on its website.

The auctioned bonds are offered for a period of three years with a coupon rate of 26.233 per cent, as per the bank’s statement.

A coupon is an annual interest paid on a bond. Investors receive a coupon payment, either annually or biannually, from issuance until maturity, if they hold the bond, according to DailyForex website.

Investors get the coupon rate, expressed as a percentage of the face value of the bond, and the coupon payments as a fixed value, irrelevant to changes in the bond price. While the initial coupon rate remains fixed, bond yields fluctuate.