BIAT Issues Subordinated Bond, Aims to Improve Regulatory Ratios and Strengthen Capital Base
The BIAT has announced the issuance of a subordinated bond, without public appeal to savings, BIAT Subordinated 2025-1. The Board of Directors has an authorization granted by the Ordinary General Meeting of Shareholders on April 28, 2023, allowing it to issue up to 800 million Tunisian dinars (MTND) of subordinated bonds over a period of three years.
The operation involves 100 MTND, which may be increased to a maximum of 150 MTND.
Five categories are proposed to shareholders, with the same nominal value of 100 Tunisian dinars (TND):
- Category A: 5-year duration, annual constant amortization at a rate of 9.40% or variable TMM + 2.15%,
- Category B: 5-year duration, annual constant amortization at a fixed rate of 9.50% or variable TMM + 2.25%,
- Category C: 7-year duration, with a 2-year grace period, annual constant amortization from the 3rd year at a fixed rate of 9.55% or variable TMM + 2.30%,
- Category D: 7-year duration, bullet repayment at a fixed rate of 9.80% or variable TMM + 2.35%.
Subscriptions for this bond issue started yesterday, Monday, May 5, 2025, through the bank's counters and will be closed by May 30, 2025.
They may be closed without notice as soon as the entire issue is fully subscribed. In case of placement of an amount less than 150 MTND at the closing date of the subscription period, the subscriptions will be extended until June 30, 2025, with maintenance of the single interest payment date. Beyond this deadline, the issue amount will correspond to the amount effectively collected by the bank.
The operation aims to improve regulatory ratios and strengthen the bank's capital base.
BIAT is the undisputed leader in the sector and one of the best signatures on the Tunisian debt market. We believe that the target of 150 MTND will be quickly reached, especially with the availability of liquidity.
Note: TMM stands for Tunisian Money Market rate.
