Bond Season in Full Swing
Amen Bank is set to issue a subordinated bond of 40 million Tunisian dinars (MTND), which may be increased to 60 MTND, without a public offering.
The bank's board of directors has obtained authorization from the Ordinary General Meeting of April 24, 2025, allowing it to issue up to 300 MTND until the next annual shareholders' meeting, which will review the 2025 financial statements.
Two categories are being offered, with the same nominal value per bond:
- Category A: 5-year duration, with an annual constant amortization starting from the first year at a rate of 9.40% or variable at TMM + 1.90% (gross).
- Category B: 7-year duration, with an annual constant amortization starting from the third year at a rate of 9.45% or variable at TMM + 1.95% (gross).
Subscriptions for this bond will be launched on Monday, June 2, 2025, and will close no later than June 16. They may be closed without notice as soon as the maximum issuance amount is subscribed. In our opinion, and considering only the group's subsidiaries, Amen Bank would have already ensured the operation; the closing statement would be published during the next week.
The subordinated nature of the bond gives an idea of the issuance objective, which is to improve prudential ratios by strengthening the bank's equity.
For subscribers, the era of two-figure bond yields is gone until further notice. It's time to take advantage of current offers, as we will soon find ourselves with rates below 9% with the next revision of the prime rate.
