Tunisia to issue $500m bond

Apr 29, 2016

The €1 billion eurobond that was scheduled this month has been postponed to next semester.

The Tunisian government will issue a $500 million (€440 million) bond on international markets "within two to five weeks," according to governmental sources cited by Reuters.

However, the €1 billion eurobond that was scheduled for April 2016 has been postponed to next semester.

The Tunisian authorities have chosen to issue bonds denominated in dollars rather than in euros after obtaining a US guarantee that should allow access to favorable rates.

The US government had already granted a similar guarantee to Tunisia in June 2014 for a loan of $500 million.

The funds raised will finance the Tunisian budget deficit. The North African country is struggling after two terrorist attacks hit the tourism industry last year, on top of the lingering effects of the 2011 political crisis.

The World Bank plans to lend Tunisia $5 billion over five years to revive its economy.ADNFCR-2976-ID-801817581-ADNFCR