Ministry of Finance Sets Characteristics of Fourth and Final Tranche of 2024 National Bond Issue
The Ministry of Finance has set the characteristics of the fourth and final tranche of the 2024 national bond issue. The collection target is set at 720 million Tunisian dinars (MTND), although this amount is theoretical, as the sums effectively raised have far exceeded the target. This is simply to remain within the framework of the authorization obtained during the vote on the 2024 Finance Law.
As usual, three categories are available:
Category A
- Nominal value: 10 TND per bond
- Duration: 5 years
- Repayment: in fine with a fixed rate of 9.75% per annum or variable rate of TMM+1.70% (according to the subscriber's choice)
- Eligibility: individuals only
Category B
- Nominal value: 100 TND per bond
- Duration: 7 years
- Repayment: starting from the fourth year with a fixed rate of 9.80% per annum or variable rate of TMM+1.75%
- Eligibility: individuals only
Category C
- Nominal value: 100 TND per bond
- Duration: 10 years
- Repayment: starting from the third year with a fixed rate of 9.95% per annum or variable rate of TMM+1.95%
- Eligibility: individuals only
To calculate the variable returns, the reference TMM corresponds to the average TMM over the 12 months preceding the interest payment month (December N-1/November N).
It is possible to subscribe to any of the three types of bonds without requiring income. In this case, the investor must specify in the subscription form that they do not accept interest and undertake not to claim it.
Subscriptions will begin on November 20 and continue until December 4, 2024.
The conditions are the same as for all previous issues, which is a sign that the rates will not change. It is unlikely that the Central Bank will revise its Direct Rate downwards during its next two meetings.
The operation is expected to be successful. The amounts raised have reached 3,749,145 MTND, exceeding the initial target of 2,870 MTND. If we look at the financial projections until the end of the year, it is easy to deduce that the actual target is 1,000 MTND. This amount is more than possible, given the accumulation of savings and the unique return offered. If you have a savings plan, do not hesitate to invest.
