Hannibal Lease Returns to the Bond Market with a Smaller Issue
Hannibal Lease is launching its second bond issue this year, albeit with a smaller scope than its March operation. The planned fundraising amounts to 15 million Tunisian dinars (Mtnd), without resorting to a public savings appeal. The goal of this operation is to strengthen the company's equity, solvency ratios, and risk concentration.
Authorization and Future Issues
The company's board of directors is relying on the new authorization granted by the General Assembly of Shareholders, held on April 30, 2024, to issue up to 150 Mtnd in 2025 and 2026. Therefore, subsequent issues will follow for more substantial amounts.
Bond Characteristics
Subscribers have two categories of bonds to choose from, both with a 5-year maturity period. The bonds offer either a fixed rate of 10.60% per annum or a variable rate of TMM + 2.60%. As an indication, the TMM rate that would be retained if an issue were to mature this month stands at 7.979%. 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, October 9, every year.
Subscription Period
Subscriptions for this bond issue will open tomorrow, October 3, 2024, and will close no later than October 9, 2024. They may be closed without notice as soon as the maximum issue amount is fully subscribed.
Note on Subordinated Bonds
It is worth noting that the issued bonds are subordinated. However, this poses no risk, given the company's good creditworthiness and its default-free history on the market. This investment opportunity is certainly worth considering.
