(Ecofin Agency) - Enda Tamweel, a Tunisian microfinance institution that owns 61% of market share, plans to carry out a bond issue operation totaling TND15 million ($5.2 million) without the use of public offerings. The issue will cover 150,000 bonds with a par value of TND100.
The loan, which will have a maturity of five years, has an annual fixed interest rate of 12.5%. The subscription period runs from 10 to 22 October. Subscribers are required not to sell these bonds to investment companies and fund managers.
The operation is expected to strengthen Enda Tamweel's financial structure, consolidate its resources in the mid and long term and support the development of its business. At the end of August 2019, the rating agency Fitch Ratings assigned a BBB- rating to the Tunisian microfinance institution.
This rating reflects the institution's solvency and financial autonomy. Fitch Ratings also believes that the entry of new investors into Enda Tamweel's shareholder base will support the company's growth ambitions.