STB Launches Subordinated Bond Issuance to Strengthen Capital Base

As the year draws to a close, the bond issuance market is gaining momentum. The timing is particularly favorable, following record fundraising levels for collective savings vehicles. This time, Société Tunisienne de Banque (STB) is entering the arena with a subordinated bond issuance, bypassing a public savings appeal. The instrument is designated as STB Subordinated 2026.

Authorization and Issuance Details

The Ordinary General Assembly, held in April 2026, authorized the bank to issue bond debt totaling 500 million Tunisian Dinars (MDT) over a five-year period. This authorization will expire upon the conclusion of the Ordinary General Assembly that reviews the financial statements for the 2030 fiscal year.

The current issuance is set at 150 MDT. Two categories are offered to shareholders, each with a nominal value of 100 DT:

Category A:
- Maturity: 7 years
- Interest Rate: Fixed gross rate of 9.05% or variable gross rate of TMM + 2.15% per annum
- Amortization: Bullet repayment (in fine)
Category B:
- Maturity: 7 years (including a two-year grace period)
- Interest Rate: Fixed gross rate of 9.00% or variable gross rate of TMM + 2.10% per annum
- Amortization: Constant amortization starting from the third year

Subscription Timeline

Subscriptions for this loan will open on October 19, 2026, and will close no later than November 13, 2026.

Strategic Objectives and Financial Context

STB aims to consolidate its equity capital and improve its risk concentration ratios. For context, the bank closed 2025 with a Tier I capital ratio of 12.80%, a comfortable level. Strengthening its core equity capital will allow the bank to safeguard against any potential deterioration in asset quality in an environment characterized by rising risks.

Investment Opportunity

Placement in this bond, particularly at a fixed rate, remains an excellent investment opportunity for those seeking solid medium- to long-term returns.