Linklaters advises Tunisian government

Linklaters has advised the Tunisian government on the country’s debut unassisted international bond, which raised USD1 billion in an oversubscribed offering.

The issuance is the first international sale of Tunisian government debt since the Arab Spring rocked economic and political stability in the country in 2011. It signals the first step in the North African country’s transition to democratic stability following Tunisia’s recent presidential elections.

International investors put in orders of more than USD4 billion for the USD1 billion bond, allowing the country to borrow at a lower than expected rate of 5.875 per cent over 10 years. Banks working on the bond sale included Citigroup, JPMorgan and Natixis. Dechert acted as international counsel to Tunisia while local firm Ferchiou & Associés advised the joint lead managers on Tunisian law issues.

The sale is one of two high-profile North African transactions for Linklaters this year and was led by capital markets partner Richard O’Callaghan.

Tunisia’s move to the bond market continues the trend of African countries who have sought to raise funds for capital projects through the international finance market.