Bond Market Dynamics Remain Strong in 2024
The bond market has maintained its momentum in 2024, with corporate bond issuances totaling 299.4 billion Tunisian dinars (MTND) since the beginning of the year.
Listed Companies
Listed companies, exclusively leasing firms, have mobilized an envelope of 180 MTND: 30 MTND by Attijari Leasing, 40 MTND by ATL, 50 MTND by Tunisie Leasing & Factoring, 20 MTND by BH Leasing, and 40 MTND by Hannibal Lease. The current subscription period for BH Leasing's second operation is ongoing, and we can confirm that the 15 MTND will be fully raised, bringing the total bond financing to 195 MTND since the beginning of the year for listed companies.
Non-Listed Companies
Non-listed companies, all microfinance institutions, have issued bonds totaling 83 MTND: 50 MTND by Enda Tamweel, 20 MTND by Microced, and 3 MTND by El Amel Microfinance.
Convertible Bonds
There was also an issuance of convertible bonds (OCA) by Land'Or Holding, reserved for Maghreb Private Equity Fund IV LLC (MPEF IV), for an amount of 21.4 MTND.
Fixed-Rate Bonds
Notably, fixed-rate bonds have attracted only 48 MTND in subscriptions (excluding OCA), indicating that investors are convinced that it will be difficult to find equally profitable investments in the coming years.
National Bond Issuance
Additionally, there were two tranches of national bond issuance, totaling 2,478.4 MTND. The sovereign has become a major player in the market and will continue to be so for many years to come. Starting in 2025, with the beginning of the amortization of previously issued bonds, there will be larger issuances to ensure refinancing of payments and financing of the state's budget deficit.
Total Bond Issuances
Overall, the total bonds issued since the beginning of the year (including the successful BH Leasing operation) amount to 2,777.8 MTND. These achievements are largely due to a collective savings effort that remains strong. The net asset value of Undertakings for Collective Investment in Transferable Securities (UCITS) stands at 6,414.2 MTND as of the end of June 2024, with a net collection of 626.8 MTND since the beginning of the year.
Outlook
For the rest of the year, all signs point to an accelerated dynamic. The threshold of 5,000 MTND in total public and corporate bond issuances is likely to be exceeded. The question remains whether banks will intervene in the coming months, which we believe will depend on the solidity of their own funds and would be reserved for subordinated loans to improve prudential ratios, if needed.