Tunisia’s Arab International Bank seeks $36.7mln on the local money market
Tunisia’s Arab International Bank (BIAT) is seeking TND100 million ($36.7 million) on the local money market. The operation is not a public offering but a private placement of the bonds. It could be increased to 200 million dinars if investors' appetite is strong.
Interested investors have until December 16, 2020, to express their willingness to subscribe to the securities issued. The sum mobilized will allow BIAT to increase its capital and improve its solvency and risk concentration ratios, as prescribed by the Central Bank of Tunisia. An improvement that will be important in this Covid-19 period.
BIAT is the largest bank in Tunisia by the volume of assets. The operation is a precautionary measure, in case for any reason the institution finds itself in great difficulty. In 2019, its net profit approached $120 million and was up 31%. However, the Bank has weaknesses in its capital base, and the economic consequences of the coronavirus are not helping.
Source: Ecofin Agency