Tunisia: ARP to Examine Bill Approving $70 Million Islamic Financing Agreement for Natural Gas Exports
The Tunisian Assembly of People's Representatives (ARP) will soon examine a bill comprising a single article, aimed at approving the guarantee agreement signed on March 12, 2025, between the Tunisian Company of Electricity and Gas (STEG) and the International Islamic Trade Finance Corporation (ITFC).
This financing, in the form of a Murabaha, amounts to $70 million and will be used to cover natural gas exports. This operation falls within the framework of a master agreement signed on February 12, 2021, between the Tunisian state and the Islamic financial institution, worth $1.5 billion. The agreement aims to support commercial flows and strengthen Tunisia's trade capacities. Two agreements have already been derived from this master agreement, with STEG and the Tunisian Chemical Group.
The interest rate corresponds to the Mid Swap Rate, plus 400 basis points. The financing duration is 12 months from the first drawdown. Repayment of each drawdown will be made over three years, as follows:
- A first installment in 24 months
- A second installment in 30 months
- A third installment in 36 months
The fees amount to 0.4% of the total envelope, and the operation is guaranteed by the Tunisian state.
This operation will enable STEG to secure its natural gas supplies ahead of a hotter-than-average summer, during which electricity consumption is expected to surge, particularly with the peak season and excessive air conditioning use by households.
