Banks Rush to Bond Market, Signaling Regulatory Change
The rush of banks to the bond market, specifically subordinated debt, is a sign that a change is being prepared at the level of prudential regulation. This is in line with what Fitch Ratings announced a few weeks ago, advancing the scenario of a transition to Basel III standards by the end of the year for the entire sector. Obviously, this will be progressive, as the level of equity is not the same within the sector.
Amen Bank Issues New Bond
This time, it's Amen Bank's turn to issue a new bond, "Amen Bank Subordonné 2026 - 1", worth 60 million Tunisian dinars (Mtnd). For reference, the financial institution closed subscriptions to a subordinated loan of 100 Mtnd on November 10, 2025.
Bond Details
The bank will make a public appeal for savings and offer a single category. The nominal value is 100 Tunisian dinars (Tnd), with a lifespan of 5 years, and annual amortization at a variable rate of TMM + 1.5% (gross). Once again, the proposed yield shows that interest rates will decrease in the coming months.
Subscription Period
Subscriptions to this bond will be launched on March 23, 2026, and closed, at the latest, on March 27, 2026. They can be closed without notice as soon as the maximum amount of the issue is fully subscribed. The goal is to strengthen the bank's net equity and increase its solvency and Tier 1 ratios.
Positive News for the Stock Market
For the stock market, this is good news. The distribution of dividends is conditional on a high safety cushion compared to the minimum regulatory capital ratios. These debt mobilizations by Amen Bank are a guarantee for the 2026 dividend, which will be distributed in 2027.
