National Bond issue: Tunisia manages to raise TND 3.799 billion with 136% response rate

Tunisia managed to raise TND 3.799 billion under the National Bond in 2023, with a 136% response rate against TND 2.8 billion initially provided for under the finance law of 2023, Director General of Tunisie Clearing Maher Zouari said. The mobilised amount is shared as follows: TND 715 million for the first tranche (response rate of 102%), TND 844 million for the second (121%), TND 1.025 billion for the third (146%) and TND 1.215 billion for the fourth tranche (174%). The total amount of borrowings until December 31 reached TND 8.604 billion, that is 35% of the oustanding amount of medium and long-term securities The State will continue to obtain funding in 2024 through national bonds by budgeting TND 2.870 billion, Zouari said. Stock market intermediaries processed 77% of subscription orders for the national bond loan in comparison with 23% by banks. The share of banks was significant in the first tranche (87% of the mobilised amount) before dropping in the second tranche to 22% (against 78% for stock m arket intermediaires). The latter managed to raise 79% of the third tranche and 71% of the fourth. The top 10 includes MAC SA (18%), STB Finance (15%), BNA Capitaux (14%), BH Invest (13%), Attijari Intermédiation (11%), BIAT (7%), Amen Bank (7%), Tunisie Valeurs (5%), la Banque de Tunisie (5%) and UBCI (4%). The division of subscriptions on the basis of fixed and variable rates shows tendency to prefer the fixed rate which finds expression in an anticipation of a drop in rates by investors, " said the Director General of Tunisie Clearing. The average split of subscriptions shows 51% for the fixed rate and 49 % for the variable rate. 61% of holders opted for the variable rate in the first tranche and 67% for the same rate in the second. The trend was reversed in the third tranche (54% of subscriptions on the basis of a fixed rate and 46% based on a variable rate) and the fourth (73% based on the fixed rate). The distribution is stable in terms of repayment period with a preference for a period of 7 years. A target amount of TND 700 million was set for a national bond loan in four tranches for 2023. Source: Agence Tunis Afrique Presse