Tunisia successfully issues $500m Eurobond
The loan, guaranteed by USAID, was oversubscribed about six times.Tunisia has issued a $500 million (€440 million) Eurobond, the Central Bank of Tunisia (BCT) announced in a statement published on August 4th.
The bond was covered by a loan guarantee from the US Agency for International Development (USAID), which has allowed the country to borrow at discounted rates on international financial markets.
"The bond issuance benefited from favorable financial conditions in terms of interest rates, which stood at 1.416 per cent," the BCT noted.
According to the Tunisian Finance Minister Slim Chaker, this rate would have been "six or seven per cent if Tunisia went alone on the market."
The USAID guarantee has spurred investors' appetite, with subscriptions reaching three billion dollars.
The funds raised will mainly 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 US government had already granted a similar guarantee to Tunisia in June 2014 for a loan of $500 million.