Capital Markets
From The Report: Tunisia 2017
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Tunisia’s stock market has seen steady growth in capitalisation in recent years, and while the number of initial public offerings (IPOs) was limited in 2016, the exchange registered a positive performance over the year due to strong results in the industrial, consumer goods and financial sectors. The near-term outlook appears equally encouraging, with several IPOs in the pipeline. The bourse is looking to accelerate that momentum by bringing in new products and calling for supportive measures from the government to further raise its level of development. The extent of economic growth, successful efforts to attract increased financing and investment, and whether or not the government goes ahead with previously suggested listings of major state-owned firms will strongly influence market performance and development going forward.

Articles from this Chapter

Overview

Offering help: New listings are in the pipeline for 2017
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Tunisia’s stock market has seen steady growth in capitalisation in recent years, and while the number of initial public offerings (IPOs) was limited in 2016, the exchange registered a positive performance over the year due to strong results in the industrial, consumer goods and financial sectors. The near-term outlook looks equally encouraging, with several IPOs in the pipeline. The bourse is looking to accelerate that momentum by bringing in new products and calling for supportive measures…

Interview

Public value: Bilel Sahnoun, CEO, Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT), on the benefits of going public
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Interview:Bilel Sahnoun What banking reforms would be most beneficial to the development of Tunisia’s capital markets? BILEL SAHNOUN: In Tunisia there is a near-complete dominance of commercial banking over investment banking. Revenues from market-related services are negligible compared to loan-related services. Banks remain absent from the equity capital market even though most of them hold stakes in brokerage firms. Currently, only brokerage firms can operate in the capital markets.…

Analysis

Sovereign state: Islamic bonds may be next as the government increases issuances
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With Tunisia’s fiscal deficit expected to rise in 2017, the government has been stepping up its activity on international debt markets. In August 2016 the authorities issued a $500m, five-year sovereign bond backed by a 100% guarantee from the US government, enabling them to obtain a coupon rate of just 1.4%. This followed US-backed loan guarantees in 2012 and 2014. At the beginning of April 2017 Tunisia’s government announced that it had approved the issuance of up to $500m more US-guaranteed…

Interview

Stimulating interest: Walid Saibi, General Manager, Tunisie Valeurs, on garnering involvement and support for the national stock exchange
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Interview:Walid Saibi How does the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) compare to other markets in the Maghreb region? WALID SAIBI: At first glance, the BVMT could seem unattractive when compared to its regional peers given its small size, low trading volumes, poor communication by the companies listed on it and a difficult macroeconomic situation. These challenges obviously create unwelcome uncertainties for foreign investors. Nevertheless, the Tunisian…

Analysis

One Tech Holding: Electronics
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The Company Founded in 1978 by Moncef Sellami in a partnership with Italian firm General Câble Riva, Tunisie Câbles was the first company of the One Tech group to begin operations. In 1991 the group oriented its business around the mechatronics sector by founding Fuba Printed Circuits Tunisie, which specialises in the manufacture of printed circuit boards for the automotive, telecommunications, computing, consumer and industrial electronics markets. In 2005 the group put together a diversification strategy that was built on the concept of a one-stop shop, offering a complete solution to its clients. This went from cables, printed circuit…

Analysis

BIAT: Banking
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The Company Created in 1976, Banque Internationale Arabe de Tunisie (BIAT) is the undisputed leader of the Tunisian banking sector. It is owned by private Tunisian industrials, which hold 60% of its share capital, led by the Mabrouk Group holding with an equity stake of 39%. With total assets of TD10bn (€4.3bn), the bank is among the most influential financial institutions in North Africa. Despite the hostile environment for the banking sector, which has in recent times seen sluggish growth, a liquidity crunch and the introduction of stricter prudential rules, BIAT has been growing its activity at a sustainable pace, while improving…

Analysis

Banque Nationale Agricole: Banking
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The Company Founded in 1959, Banque Nationale Agricole (BNA) was initially dedicated to financing the agricultural sector. It has since diversified, and now offers a full range of banking services. As part of the process of public sector reform BNA underwent an audit, resulting in a restructuring plan revolving around the overhaul of the bank’s governance and organisation systems; the development of a commercial recovery strategy; reshuffling of the IT system; and the establishment of a human resources restructuring plan. Unlike the two other state-owned banks, BNA did not benefit from state support to carry out a recapitalisation…

Analysis

Délice: Dairy products
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The Company Founded in 1978 by Mohamed Meddeb, Délice Group specialises in milk and dairy products (yoghurt, butter, cheese, juices and other drinks). The group has been strengthening the value chain at all levels, including through partnerships with world-leading groups in milk and dairy (Danone in 1997 and Bongrain in 2008). The result is that Délice Group has become Tunisia’s leader in both the milk and yoghurt markets. It is: • Number one in yoghurt, with a 66% market share (Vitalait is second with 18%); • Number one in milk, with a 47% market share (Vitalait is second with 28%); • Number two in juices, with a 28% market…