Tunisie Leasing & Factoring (TLF) Issues New Bond, TLF 2024-2, Worth up to 50 Million Tunisian Dinars
During the last ordinary general assembly of Tunisie Leasing & Factoring (TLF) held on April 29, 2024, shareholders authorized the board of directors to issue one or several bond loans with a maximum value of 120 million Tunisian dinars (MTND). This authorization is valid until the assembly that will review the financial statements for the 2025 fiscal year.
In this context, the historical leader of the leasing industry has decided to tap the market by issuing a new bond, TLF 2024-2. The issue aims to raise 40 MTND, which can be increased to 50 MTND, through a public savings appeal.
The bonds will have a 5-year term, with a fixed gross rate of 10.50% (or 8.40% net per annum), or a variable rate of TMM + 2.50%. Based on current data, this corresponds to a net yield of 8.38%. Amortization will begin in the first year. Annual interest payments and capital repayment will be made on the due date of September 17 of each year.
The objective of this operation is primarily related to asset-liability management. The company seeks to restructure its liabilities by securing resources better suited to the nature of its interventions in terms of maturity.
Subscriptions and payments for this bond will be open from August 28, 2024, and will close no later than September 17, 2024. However, the start of subscriptions is contingent upon the publication of the final rating by Fitch Ratings. Currently, Fitch Ratings assigns a long-term national rating of BBB-(tun) to TLF, with a stable outlook. In the short term, it is rated F3 (tun). The bond has been provisionally rated BBB-(EXP)(tun) by Fitch Ratings.
The issue may close without notice as soon as the maximum amount of 50 MTND is fully reached.
Historically, TLF remains a safe haven in the Tunisian bond market and enjoys an excellent reputation. It will face competition from the sovereign during the subscription period, but it has the ability to convince investors. We expect the 50 MTND ceiling to be reached. To your portfolios!
