Capital Markets
From The Report: Tunisia 2016
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Tunisia has an active stock market that has seen a large number of equity listings in recent years. Furthermore, there are regular government and corporate bond issues, though the secondary market is relatively shallow and bond trading activity is minimal. Both markets, and particularly the corporate bond segment, are dominated by the financial sector. Following strong growth in 2014, the country’s all share index, Tunindex, had a good first half of 2015 but lost all of the period’s gains following a terrorist attack in June that dented economic confidence. Industry players are hopeful that the market will perform better in 2016, and the Tunindex’s strong growth prior to the attack, as well its good start to 2016, suggests that such hopes may well be fulfilled, provided the security environment fully establishes. This chapter contains an interview with Bilel Sahnoun, CEO, Tunis Stock Exchange; and a viewpoint from Fadhel Abdelkefi, General Manager, Tunisie Valeurs.

Articles from this Chapter

Overview

Restoring confidence: After riding out a period of uncertainty the markets are showing good prospects for growth
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Tunisia has an active stock market that has seen a large number of equity listings in recent years and that witnesses regular government and corporate bond issues, though the secondary share market is relatively shallow and bond trading activity is minimal. Both markets, and particularly the corporate bond market, are dominated by the financial sector. Following strong growth in 2014, the country’s all-share index, Tunindex, had a good first half of 2015 but lost all of the period’s gains following…

Interview

Access and integration: OBG talks to Bilel Sahnoun, CEO, Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT)
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Interview:Bilel Sahnoun To what extent has the recent political stability impacted activity on the BVMT? BILEL SAHNOUN: The Tunisian stock exchange had anticipated the current political stability, which resulted in a 16% growth rate in 2014 and 11.5% growth in the first half of 2015. In terms of initial public offerings (IPOs), 2013 and 2014 were very good years. There were 12 new companies in 2013 and six new companies in 2014. This growth can be explained by the fact that prudential banking…

Viewpoint

Ready for take-off: Fadhel Abdelkefi, General Manager, Tunisie Valeurs, on changes to stock exchange regulations
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The Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) has a technical and legal structure in line with the best international standards. It uses the trading platform used by developed markets generally, including the New York Stock Exchange and Euronext NV. BVMT is a private company exclusively owned by the broker-dealers. The depository and clearing house settles trades on a T+3 system, and there is a guarantee fund to protect operators against settlement failures. As for the…

Analysis

Spurring development: The authorities look into stimulating growth in the bond market
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Tunisia’s bond market is going strong, with both the government and local financial institutions – and leasing companies in particular – regularly issuing debt. Trading levels, however, are very low, though the operators of the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) are looking at ways to increase transactions. In addition, plans under way to allow corporates to issue sukuk (Islamic bonds) could also help spur the market’s development. The government, which returned…

Overview

Poulina Group Holding: Diversified
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The Company With total sales above TD1.5bn (€687.9m), Poulina Group Holding is ranked among the top private enterprises in Tunisia. The group started in the late 1960s when the founder set up a small chicken farm business with a view to innovating in the mass consumption sector. Diversification came as the group grew fast and developed into a fully integrated business. Today, Poulina is one of the largest Tunisian conglomerates with more than 100 subsidiary companies in a variety of industries, including poultry, consumer goods, distribution, ceramics and building materials, civil engineering, packaging, steel, wood and real estate. Poulina’s…

Overview

Banking Banque de l’Habitat:
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The Company Banque de l’Habitat (BH) was established in 1989 following the conversion of the National Fund of Housing Savings into a commercial bank. BH has established itself as a pioneer in the mortgage segment in Tunisia, playing a major role in the ownership rate over the past 30 years. After the revolution, the economic consequences that followed highlighted weaknesses of equity ratios, but also strategic and risk exposure, which had a direct impact on the sustainability of the state bank. Following these findings, and like the other two public banks, an audit was launched and lasted two years. Under the recommendations of international…

Overview

SAH-Lilas: Industry
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The Company Founded in 1994 by Jalila Mezni, Société d’Articles Hygiéniques (SAH) is one of the fastest-growing groups in the Tunisian economy. SAH started with feminine hygiene production under its own brand Lilas. As the group began to grow rapidly, it has expanded its production to include baby diapers, tissues and diapers for adult incontinence. In 2008 the company opened its capital to a private equity fund to back its development plan both inside and outside Tunisia, and ECP Africa NACG bought a 49% stake in the company. This capital raising enabled Lilas to go international and set up factories in neighbouring countries such as Libya,…

Overview

SFBT: Food and beverages
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The Company With total annual sales of around TD900m (€412.7m) in 2014, Société de Fabrication de Boissons de Tunisie (SFBT) is becoming one of the major private sector groups in Tunisia. It is made of 25 companies and generates most of its sales from soda beverages and beers. SFBT is a market leader in both segments. Since the year 2000 the strategy of the group has revolved around diversification, with the view to offer the widest product range possible. The company started with mineral water, then went into juices and, finally, milk. Over time, the mineral water segment has become the real engine for growth inside the SFBT group. As for…