ATL Launches Second Bond Issue of the Year, Aiming to Raise 20 MTD
ATL is launching its second bond issue of the year, seeking to raise 20 MTD, which could be increased to 40 MTD. The operation aims to finance the company's activities and restructure its debt, providing a more suitable resource aligned with the nature of its interventions in terms of maturity.
Authorization and Objectives
The Board of Directors is relying on the recent authorization granted by the General Assembly of Shareholders, held on April 25, 2024, to issue up to 150 MTD before the next General Assembly, which will review the 2024 accounts.
Bond Characteristics
Subscribers have a single category of bonds with a 5-year maturity at a fixed rate of 10.35% 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 at maturity, on January 27 of each year. Over the placement period, a 100 TND bond will yield 24,840 TND net. The launch of the operation next month is well-timed, as it would be challenging to compete with the attractive national loan offer currently available.
Subscription Period
Subscriptions will open on December 9, 2024, and will close, at the latest, on January 27, 2025. They may be closed without notice as soon as the maximum issue amount 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 15, the agency confirmed the company's rating at BBB+ (tun) with a stable outlook, and F2 (tun) for short-term rating. Provisionally, Fitch Ratings has assigned a BBB+ (EXP) (tun) rating to the proposed issue, pending final confirmation.
A Good Investment Opportunity
The placement presents a good opportunity. For 2024, ATL has planned investments of 370 MTD, which will be financed by 58,100 MTD in bond issues, 24,900 MTD in local and foreign bank credits, and the remainder through cash flow generated by the activity. Over the first nine months of the year, the company has already achieved production of 289,773 MTD, indicating that the objective will be met according to historical figures in the last quarter. This is a good opportunity to invest in corporate bonds.
