BTK Sets Terms for New Bond Issue BTK 2024-1
The Board of Directors of BTK has set the terms for its new bond issue, BTK 2024-1. The bank plans to raise 25 million Tunisian dinars (MTND), which will be used, among other things, to improve its asset-liability management and diversify its product and service offerings.
For this issue, the Board of Directors is relying on the authorization granted by the General Assembly of Shareholders, held on October 16, 2023, which allowed it to issue up to 150 MTND in 2023-2024.
Subscribers will have a single category of bonds with a 5-year maturity and an exclusively variable rate of TMM + 2.50% gross per annum. 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, January 15 of each year.
Subscriptions for this bond issue will open on December 18, 2024, and will close, at the latest, on January 15, 2025. They may be closed without notice as soon as the maximum amount of the issue is fully subscribed. Note that the opening of subscriptions is subject to the publication of the final rating by Fitch Ratings on its website. On October 7, the agency assigned a rating of B (tun) with a stable outlook, and B (tun) for the short-term rating. Provisionally, Fitch Ratings has assigned a rating of B (EXP) (tun) to the proposed issue, pending final confirmation.
What is remarkable about this issue is the absence of a fixed rate. BTK is not taking any interest rate risk, as there will be a new cycle for monetary policy over the life of the bond. Those who expect an increase in interest rates, although this is highly unlikely in the short and medium term, or those who want to secure a fixed margin relative to the market have a great opportunity to seize.
