National Bond Issue: A Resounding Success
The second tranche of the national bond issue has once again achieved a resounding success. While the target was set at 700 million Tunisian dinars (Mtnd), the final collection reached approximately 1,445 Mtnd, an absolute record for a single tranche since the launch of this financing mechanism in 2021. The operation was well-prepared, and the launch momentum was carefully chosen, leading to this outstanding result.
Collective Savings: The Driving Force
Collective savings were the driving force behind this outperformance, with over 60% of the subscribed amounts ensured by stock exchange intermediaries through Undertakings for Collective Investment in Transferable Securities (UCITS). Beyond the fact that these investment vehicles found a golden opportunity to boost their returns, it is indeed the best way to reinvest dividends distributed by banks and certain large enterprises. Their dynamic has transformed into a guarantee for the successful outcome of these sovereign bond issues, increasing the role played by the financial market in financing the national economy.
Category B: The Most Popular Choice
The Category B bond (7 years with a 2-year grace period) attracted approximately 72% of the placements, i.e., over 750 Mtnd. This was also the case in previous issues. This maturity period is the most suitable for Tunisian investors, who are not too fond of long-term investments. It is essential to remember that UCITS are liquid assets, with money that can be mobilized at any time. The liquidity factor comes into play.
Fixed-Rate Bonds: The Preferred Choice
Finally, the distribution of subscriptions by rate shows that 87% of the amounts were placed at fixed rates, compared to 13% at variable rates. To recall, during the second tranche in 2023, the trend was perfectly inverse. Investors who bet on a rate hike last year have understood that the peak has been reached and that it is essential to take advantage of it before the downward trend is triggered.
