The issue, guaranteed by the US Agency for International Development (USAID), of a US bond market, for an amount of USD 500 million (about 1.103 billion dinars), was co-led Wednesday August 3, by Messrs. Slim Chaker, Finance Minister in the caretaker government and Chedly Ayari, Governor of the Central Bank of Tunisia at the headquarters of the BCT, which is acting under the law in the name and on behalf of the state, the central bank announced in a press release Thursday.
This issue is part of the mobilization of external resources for the year 2016, which law was adopted by the House of People’s Representatives on July 12, 2016, highlighted the BCT.
This operation was directed from the trading room of the BCT, with the assistance from London, of two arranging banks, JP Morgan and Goldman Sachs.
According to the BCT, “the issue was conducted in favorable financial conditions in terms of interest rates, which stood at 1.416%, thanks to a very broad and diversified order book comprising a base of quality investors, and the amount of bids exceeding 6 times the amount announced, i.e. more than 3 billion US dollars.
The reduced cost of the bond issue is explained by the low level of the margin which was only 33 basis points above the US benchmark bond rate at 5 year (1.086%). “
Financial terms of this bond in the amount of USD 500 million carry an annual interest rate of 1.416% payable semi-annually and a maturity of 5 years (maturity date, August 5, 2021).