Tunisair Launches Second Bond Issue, "Emprunt Obligataire Tunisair 2025-2"
After a first operation that raised 25.2 million Tunisian dinars (Mtnd), Tunisair has launched a second bond issue, "Emprunt Obligataire Tunisair 2025-2", with a significantly higher amount of 124.8 Mtnd, without a public call for savings.
Background
The issue is based on the decisions of the last Ordinary General Assembly, which ruled on the financial statements for the 2021 fiscal year. Shareholders authorized the airline's board of directors to issue bond debt of up to 150 Mtnd over a period of 12 months. By adding the two issues, we understand that this is the second and final operation, at least until the next shareholders' meeting.
Bond Issue Details
Five categories are offered, with a nominal value of 100 Tunisian dinars (Tnd) per bond. The duration is seven years, with a one-year grace period, and the amortization is monthly and constant from the second year at an annual interest rate of 10% (gross). Interest payments will also be monthly.
Categories and Redemption Periods
What differs between the categories is the redemption period, defined as follows:
- Category A: 30 Mtnd, to be redeemed between November 11 and 20, 2025
- Category B: 30 Mtnd, to be redeemed between December 11 and 20, 2025
- Category C: 30 Mtnd, to be redeemed between January 12 and 20, 2026
- Category D: 30 Mtnd, to be redeemed between February 11 and 20, 2026
- Category E: 4.8 Mtnd, to be redeemed between March 11 and 20, 2026
Subscription and Payment Terms
Subscriptions will be received at the company's headquarters. Monthly interest payments and capital repayment will be made on the due date, the 20th of each month. If the 20th day of the month coincides with a non-working day, the payment will be postponed to the next working day.
Implications
The monthly repayment mode imposes an immediate performance obligation on the company's management, unlike a final maturity. Each payment constitutes a credibility test on the markets, and any default would definitively compromise any future bond issue with a public call for savings.
Conclusion
Although the overall envelope provides a breath of fresh air for the company's treasury, it is insufficient to durably resolve Tunisair's persistent operational difficulties. The priority must focus on a deep restructuring of its operations.
