Tunisia's Potential Return to International Debt Markets
As Tunisia considers a return to international private debt markets, it's essential to examine the exit conditions of African countries to mobilize funds.
Yesterday, Nigeria issued eurobonds worth $2.35 billion with 10- and 20-year maturities, attracting a record-breaking $13 billion in subscriptions from investors. Despite threats from US President Donald Trump regarding potential military action in the country if authorities failed to curb Christian killings, investors largely ignored these concerns.
The Nigerian debt agency reported that the 10-year bonds were issued at a rate of 8.6308%, and the 20-year bonds at 9.1297%, both below initial price indications. The funds raised through this eurobond issue will be used to finance the nation's 2025 budget deficit.
Several African countries have returned to the eurobond market in recent weeks to capitalize on lower interest rates and robust investor demand, with total emerging market sovereign debt issuance reaching a record high this year. The Republic of Congo issued its first eurobond in nearly 20 years, while Kenya and Angola issued new bonds last month.
For Tunisia, we believe it should still wait until mid-2026 to issue debt. The idea is to benefit from the potential decrease in interest rates by the Fed, on the one hand, and to take advantage of a possible upward revision of the sovereign rating by Moody's in the first quarter of next year.
