BH Bank Launches Bond Issuance for 2025
BH Bank has kicked off the bond issuance by credit institutions in 2025. Following the authorization granted by the Ordinary General Meeting of Shareholders on April 27, 2024, allowing it to issue up to 150 million Tunisian dinars (MTND) in bond loans over a 3-year period, the Board of Directors has decided to launch the first operation this year. BH Bank 2025-1 is a non-public savings bond issue with a total amount of 50 MTND, which may be increased to 70 MTND.
The bond issue offers five categories to shareholders, each with a nominal value of 100 TND:
- Category A: 5-year term, annual constant amortization at a rate of TMM + 2.15%
- Category B: 5-year term, annual constant amortization at a fixed rate of 10.05%
- Category C: 7-year term, annual constant amortization at a rate of TMM + 2.30%
- Category D: 7-year term, annual constant amortization at a fixed rate of 10.20%
- Category E: 7-year term with a 2-year grace period, annual constant amortization starting from the third year at a rate of TMM + 2.35%
Subscriptions for this bond issue will be received from Monday, February 17, 2025, and will close no later than March 17, 2025. They may be closed without notice as soon as the maximum issue amount is fully subscribed. If the subscription amount is less than 50 MTND by the closing date, March 17, 2025, subscriptions will be extended until April 17, 2025, with the interest payment date remaining unchanged. After this deadline, the issue amount will correspond to the amount actually collected by the bank.
The operation aims to strengthen the bank's asset-liability management, comply with regulatory ratios, ensure better financing of medium- and long-term loans, and finance credits with resources of the same maturity to match medium- and long-term resources with uses and preserve the adequacy between maturities and interest rates. This will also enable the bank to develop its product and service offerings and finance investments.
BH Bank has one of the best credit ratings on the Tunisian debt market, which has contributed to offering a lower rate compared to recent issues by banks or other financial institutions. We believe that the proposed remuneration is the first in years to take into account the expected decrease in interest rates this year. We think that for those seeking a risk-free and profitable medium-term investment, this bond issue would be one of the last to offer a two-digit rate.
