Tunisia raised €500 million ($570 million) through a Eurobond issuance at 6.75% interest rate, Reuters reported quoting official sources.  

The Eurobond which was reduced from the planned $1 billion to $570 million aroused the interest of about 120 investors and the orders reached $1.42 billion.

The interest rate of this issuance which is aimed at financing the deficit is high compared to the last issuance in January 2017 (5.75%).

"With a year's maturity period, the issuance was concluded at a 6.75% interest rate without taking into account organization and other success fees owed to four banks which organized the operation. This cost is relatively high compared to the previous issuances", commented Habib Karaouli, CEO of Capital African Partners Bank (formerly Banque d’Affaires de Tunisie). "The number of subscribers for such a small amount indicates that we are now attractive to only fourth or fifth graders with limited funds and willing to invest in speculative-grade bonds", he added indicating that the operation was “far from being a success." M. Karaouli also estimated that the timing was in favour of Tunisia since it solicited the market immediately after the degradation of its outlook by Moody’s.

Let’s note that Deutsche Bank, JPMorgan Chase & Co, Citigroup, and Natixis arranged the issuance which was initially planned to be organized in Q1, 2018 before being postponed many times due to bad market conditions.