(Ecofin Agency) - Central Bank of Tunisia postponed the European roadshow to meet investors specialized in fixed return financial products, Zwaya revealed citing sources close to the operation. The tour was postponed because of the principle agreement signed with International Monetary Fund for a $2.8 billion credit line.
As the tour was postponed, also was the issuing of $500 million sovereign bond previously announced by Tunisian government. IMF’s board will meet next month to decide on the principle agreement with Tunisia, and till then, the Eurobond will be considered a reserve solution.
Since the beginning of 2016, in Africa, only South Africa issued a dollar sovereign bond. Other countries were discouraged by the high rates associated. Even though these rates decreased at the beginning of April, most heads of states in the region are still concerned about the effects that a dollar hike could have, as commodity prices are still low and local currencies weaken against American dollar.
As a result, countries such as Nigeria chose to borrow from China and are even considering the Panda bond option. Others like Kenya and Cote d’Ivoire, plans to issue sukuks bonds. Tunisia for its part counts on partners like France, African Development Bank or USA.
