National Bond Issue 2024: A Resounding Success
The Treasury initially set a target of 720 billion dinars (MTND) but ultimately mobilized 1,345 MTND in the fourth and final tranche of the 2024 national bond issue. The operation took place from November 20 to December 4. This mechanism has thus enabled the mobilization of over 5,094 MTND, an absolute record. The initial target set in the 2024 finance law was 2,870 MTND.
The influx of deposits from savers into collective investment vehicles and the thriving asset management activity of financial institutions have significantly contributed to the unprecedented success of this series of issues. The sovereign debt market has become deeper and, above all, a reliable source of revenue. However, the impact on the availability of resources for other economic operators is negative. Beyond bank credits, which remain dependent on the existence of guarantees, financing through other tools, such as treasury bills, for example, is less dynamic and more expensive. The same applies to off-balance-sheet operations, which suffer from a lack of enthusiasm for risk and a mechanical decline in valuations due to high interest rates.
Next year, the 2025 finance law sets a target of 4,800 MTND. We believe that this figure will be far exceeded, given the growing needs of public finances, on the one hand, and the amortization of old tranches, which would amount to 566.7 MTND solely in principal debt repayment.
