Tunisia sells $1bn ten-year bond, lures $4bn in offers

By bne IntelliNews January 28, 2015

Tunisia successfully wrapped up a $1bn ten-year USD-denominated sovereign bond issue that earned a fixed coupon of 5.75%, the central bank said in a statement. The bond issue, which was arranged by JP Morgan, Citi and Natixis, lured $4bn in offers from 270 global investors.

The strong investor demand reflects renewed confidence in Tunisia’s medium-term outlook following the successful parliamentary and presidential elections that took place at end-2014.  The strong demand also prompted the Tunisian government to up the bond issue from the previously planned $500mn, the central bank underscored.

Tunisia held roadshows for the bond between January 16-26 in New York, Los Angeles, Boston and European countries.

Besides bridging the budget gap in 2015 the bond issue will also help lift Tunisia’s FX reserves. The 2015 budget implies TND29bn ($15.7bn) in spending, up 6% y/y, and 5% of GDP deficit, narrowing from an expected 5.8% gap in 2014. The budget bill also forecasts a 3% GDP growth in 2015.

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