Subscriptions to the second tranche of the 2024 national bond loan will begin tomorrow, Monday, May 6, to mobilize 700 million dinars, and will continue until May 13. Financial analysts are optimistic about the success of the mobilization process, which comes at a favorable time in the economic situation.
This year’s National Bond issuance is being carried out in four tranches to finance the 2024 state budget. The public treasury managed to collect 1,033.7 million dinars (MD) for the first tranche of the bond issue, exceeding the initial objective of 750 MD, or a response rate of 138%, according to Maher Zouari, general manager of Tunisie clearing. Funds mainly come from stock market intermediaries (67%) and banks (33%).
Financial analyst Bassem Naifer told TAP agency that all the conditions for success are met, considering that the Ministry of Finance sends a positive message to the market and investors by choosing to mobilize in the second tranche (700 million dinars ) an amount lower than that of the first tranche (750 million dinars), since the government has already benefited from 7 billion dinars from the Central Bank of Tunisia.
“The timing of the issuance of the second tranche of the Bond Loan is very favorable,” he said, affirming that “the month of May 2024 does not include significant debt repayments, with the exception of repayment of 448 MD in the form of short-term 13-week treasury bonds which were borrowed at the beginning of last year and which were repaid on May 2.
For the second tranche of the 2024 national bond issue, the Ministry of Finance has chosen to keep the same characteristics of previous releases. This means that the Treasury will offer three types of bonds:
Category A: Reserved for individuals, these bonds have a nominal value of 10 TND each and a duration of 5 years, including four grace years. Thus, the principal will be repaid in a single installment in the fifth year. Interest is payable annually at the fixed rate of 9.75% per year or at the variable interest rate of TMM+1.70%, depending on the subscriber’s choice.
Category B: These bonds have a nominal value of 100 TND each and a duration of 7 years, including three grace years. Principal repayment will begin from the fourth year. For interest, it will be paid annually at a fixed rate of 9.80% per year or a variable interest rate TMM+1.75%, depending on the subscriber’s choice.
Category C: These bonds have a nominal value of 100 TND each and a duration of 10 years, including two grace years. Reimbursement of the principal will begin from the third year. For interest, it will be paid annually at a fixed rate of 9.95% per year or a variable interest rate TMM+1.95%, depending on the subscriber’s choice.
