Treasury Bills: A Financing Solution for Companies
Treasury bills are a type of negotiable debt securities that allow companies to access short-term financing, alternative to those provided by the banking sector. They offer investors a good compromise between risk and return. In practice, rates are high, especially for SMEs that have an urgent need to cover expenses and cannot wait for the time required for a bank credit procedure.
Characteristics of Treasury Bills
The most common durations are 90 and 120 days, with a unit amount that must be a multiple of 50,000 TND. In 2024, treasury bills represented 11% of the primary market for negotiable debt securities issued on the Tunisian financial market.
Domiciliation of Treasury Bills
This instrument must be domiciled with a bank. However, Tunisie Clearing has noticed that some banks are domiciling treasury bills issued by companies with a SARL (Limited Liability Company) legal form. In this regard, it has reminded that according to Article 101 of the Commercial Companies Code, it is prohibited for a SARL to issue or guarantee securities, while treasury bills are. Therefore, banks are called upon to no longer domicile treasury bills issued by limited liability companies.
Consequences for Companies
This is bad news for companies that were willing to pay more to gain precious time. During their issuance, guarantees are presented. A financing track is thus eliminated, complicating the lives of managers who must find ways to ensure their operations.
