Public Support for Tunisian Chemical Group's Fertilizer Imports
The Tunisian Chemical Group (GCT) has received new public support for financing its fertilizer imports. The Assembly of People's Representatives (ARP) has published a draft law approving a guarantee agreement between the Tunisian Republic, the International Islamic Trade Finance Corporation (ITFC), and the GCT to mobilize up to $70 million.
Objective
The objective of this agreement is to enable the GCT to finance the purchase of raw materials necessary for fertilizer production. According to the explanatory document accompanying the draft law, this agreement concerns a short-term financing convention signed on December 1, 2025, between the ITFC and the GCT, with a guarantee from the Tunisian state.
Mechanism
The proposed mechanism is designed to allow the Tunisian Chemical Group to secure the supply of essential raw materials for its industrial activity, particularly to meet the needs of fertilizer production for the local market and export.
Financing Framework
The financing is part of the framework agreement signed between Tunisia and the ITFC on April 28, 2024, covering the period 2024-2026. This agreement aims primarily to support the financing of import needs for companies and public entities operating in priority sectors.
Shared Financing
The financial arrangement is based on a co-financing mechanism, with the ITFC providing part of the financing and coordinating a group of lenders to ensure the complete mobilization of necessary resources.
Financial Terms
The main financial conditions provided for in the project include:
- Financing of up to $70 million, granted in the form of short-term Murabaha
- Interest rate based on the SOFR rate plus a margin of 3.75%
- Each drawdown must be repaid over a period of 12 months
- Financing includes an execution commission of 0.4% of the total amount mobilized
- The arrangement is based on a guarantee from the Tunisian state
This new support is expected to help the GCT secure the necessary funding for its fertilizer imports, ensuring a stable supply of raw materials for its industrial activities.
