Enda Tamweel Launches its First Bond Issue "Enda Tamweel 2024-1"
Enda Tamweel, the undisputed leader in Tunisia's microfinance industry, has launched its first bond issue, "Enda Tamweel 2024-1", with the aim of raising 40 million Tunisian dinars (Mtnd), which could be increased to 50 Mtnd.
Unlike its previous issue in August 2023, this operation will be carried out through a public offering to consolidate the institution's medium- and long-term resources and support the development of its activities.
The financial institution's board of directors has obtained authorization from the General Assembly of Shareholders, held on June 23, 2022, to issue up to 300 Mtnd by the end of 2024.
Subscribers can choose between two categories:
Category A
- 5-year term
- Fixed rate of 10.8% per annum or variable rate of TMM+2.9%
- Annual repayment through constant amortization starting from the first year
Category B
- 7-year term, with 2 years of grace
- Fixed rate of 11% per annum or variable rate of TMM+3.15%
- Annual repayment through constant amortization starting from the third year
The annual interest payment and capital repayment will be made on July 24th of each year.
Subscriptions for this subordinated bond issue will open on May 10, 2024, and close, without notice, on July 24, 2024, or earlier if the maximum issue amount is fully subscribed.
The opening of subscriptions is subject to the publication of the final rating by Fitch Ratings on its website. Fitch Ratings has assigned a provisional long-term rating of BBB (tun) (EXP) to the "Enda Tamweel 2024-1" bond issue, dated April 11, 2024. In October 2023, Fitch Ratings upgraded Enda Tamweel's national long-term rating from BBB- (tun) to BBB (tun) with a stable outlook, and confirmed its national short-term rating at F3 (tun).
Once again, the microfinance institution is offering a high yield. Enda Tamweel has no liquidity or solvency concerns and has an excellent credit quality. This rate is explained by its ability to generate returns. Investing 100 TND in Category A at a fixed rate would allow the investor to earn cumulative interest of 25,920 TND over the entire investment period. Investing the same amount in Category B at a fixed rate would yield net interest of 44 TND.
At variable rates, the returns would be 26,138 TND and 44,564 TND, respectively, for Categories A and B. However, it is essential to consider that these figures are indicative, as the actual interest rates depend on the evolution of the TMM.
If you're looking for a good investment opportunity and a way to optimize your tax strategy, this is one of the best options currently available on the market.
