Tunisian tycoon Rached Horchani's Taysir microfinance to issue $25-million debenture loan

Oluwatosin Racheal Alabi -

Key Points:

  • Taysir Microfinance issues a $25-million debenture loan to support its microfinance activities.
  • The loan offers fixed and variable interest rates, appealing to a wide range of investors.
  • The initiative aims to bolster Taysir’s financial base and support small businesses and entrepreneurs.

Taysir Microfinance, a key entity under the HORCHANI Group led by Tunisian tycoon Rached Horchani, will issue a debenture loan through a public offering. The goal is to raise $25 million (40 million Tunisian dinars).

This move aims to support the company’s microfinance activities and expand its reach in providing financial services to underserved communities.

The Executive Board of Taysir Microfinance outlined the terms of the debenture loan to attract a wide range of investors. Investors seeking stable returns can benefit from the fixed interest rate.

This rate ranges from 10- to 12.5-percent gross per annum, providing predictable and consistent income.

For those willing to take on more risk, the variable interest rate is linked to the Money Market Rate (MMR). It offers an additional two percent to four percent gross per annum.

This option provides an attractive alternative for investors looking to leverage fluctuating market conditions.

Categories of the loan

The loan is divided into two main types based on duration and interest rates. Category A offers a fixed rate of 10.90 percent and/or MMR + 2.95 percent gross per annum for a term of five years.

Meanwhile, Category B provides a fixed rate of 11.10 percent and/or MMR + 2.95 percent gross per annum for five years.

It also includes an option of an 11.10 percent fixed rate and/or MMR + 3.20 percent gross per annum over seven years, including two years of grace. Notably, subscriptions to Category B are capped at 20 percent of the total bonds subscribed.

Taysir Microfinance, structured as a public limited company (Societe Anonyme), continually fortifies its financial base. It does so by mobilizing resources through equity, bank debt, and bond issues.

This debenture loan will consolidate the institution’s medium and long-term resources, enhancing its capacity to finance its expanding microfinance operations.

Impact on local economy

With the new infusion of capital, Taysir Microfinance aims to advance its mission of providing financial services to small businesses and entrepreneurs who lack access to traditional banking services.

This move will positively impact the local economy by fostering entrepreneurship and enabling economic growth at the grassroots level.

Starting from the end of July, investors can subscribe to this bond issue and make payments at the counters of TUNISIE VALEURS and other stock market intermediaries.

The successful issuance of this debenture loan will mark another milestone in Taysir Microfinance’s journey towards financial empowerment and inclusive economic development in Tunisia.