Microfinance Institution El Amel Issues Bonds to Raise 10 Million TND
After ENDA Tamweel, El Amel Microfinance is now soliciting investors to subscribe to its bond issue, aiming to raise 10 million Tunisian dinars (TND) without resorting to a public savings appeal. The bonds will have a 5-year term and offer extremely attractive conditions.
Investment Options
Subscribers can choose from two options:
- Fixed Rate: 11.50% gross (9.2% net)
- Variable Rate: TMM (Tunisian Money Market rate) + 3.5% gross
Based on current rates, the TMM stands at 7.988%, resulting in a net return of 9.19%.
Bond Characteristics
- Amortization: Constant from the first year
- Interest Payment: Annually on June 7th
- Capital Repayment: At maturity on June 7th of each year
Objective
The bond issue aims to strengthen El Amel Microfinance's financial structure by consolidating its medium- and long-term resources, supporting the development of its activity, and expanding its agency network.
Subscription Period
Subscriptions and payments will be accepted from Tuesday, May 7th, 2024, at El Amel Microfinance's counters, and will close on June 7th, 2024, at the latest. The subscription period may be closed earlier if the full amount of 10 million TND is reached.
About El Amel Microfinance
As a relatively new player in the microfinance sector (authorized by the Ministry of Finance on January 9th, 2019), El Amel Microfinance's business has not yet reached maturity, justifying the high interest rate. The bond issue is not guaranteed and is not rated, which explains the attractive return. However, we believe that the risk is moderate, given the highly profitable nature of the microfinance industry, with average returns in the double digits, unrelated to those of traditional banks. For investors with a moderate risk appetite, this is an opportunity not to be missed.
