BH Leasing Raises 20 Million Dinars in Bond Issue
In March 2024, BH Leasing successfully raised 20 million dinars through a bond issue without public appeal, demonstrating a well-prepared operation and high-quality signature. The company's board of directors had obtained authorization from the General Assembly of Shareholders on April 27, 2021, to issue up to 50 million dinars in bonds within a three-year period.
A second bond issue has been announced for the second half of 2024, with details published yesterday. This time, the targeted amount is 15 million dinars. Subscriptions and payments will be received starting today, July 16, 2024, and will close no later than July 19, 2024. In the world of finance, this means the operation is already secured, essentially guaranteed by other members of the BH Bank Group. The objective is to consolidate the company's activity over the coming months.
Subscribers have a single category of bonds with a 5-year maturity, fixed interest rate of 10.70% per annum. The repayment will be made through an annual constant amortization starting from the first year. Interest and capital repayment will be paid on the due date, July 19, every year. The cumulative net returns over the 5-year period, calculated on a 100-dinar investment, are 25,680 dinars.
This bond issue is not backed by any specific guarantee and is not rated. However, its affiliation with the BH Bank Group allows it to benefit from investor confidence. In fact, the last Ordinary General Assembly authorized the issuance of one or more bond issues and/or subordinated bonds up to a maximum amount of 100 million dinars within a 3-year period.
The offered rate is in line with market practices and the same rate applied during the first issue this year. For risk-averse investors, this is an excellent investment opportunity.
