Tunisair Approves $51.5 Million Bond to Boost Recovery

Tunisair has approved a bond issue valued at TND150 million (USD51.5 million) to strengthen its financial position and support operations as the airline continues its turnaround efforts. The financing plan, approved during the carrier’s ordinary general meeting on September 10, will be carried out in one or several tranches over the next 12 months.

The airline’s board of directors was granted full authority to determine the bond’s terms and structure, signaling flexibility in how the funds will be raised. The move aims to restore operational stability as Tunisair grapples with ongoing equity deficits and liquidity constraints.

Despite sustained losses, the board reaffirmed the airline’s operational continuity, noting that equity capital remains below half of its registered share capital as of December 31, 2021. Tunisair reported a net loss of TND266 million (USD91.5 million) for that year, with cumulative equity deficits exceeding TND1.8 billion (USD620 million).

The government has intensified efforts to stabilize the state-owned carrier, with Transport Minister Rachid Amri setting an October deadline for a comprehensive recovery plan. The initiative focuses on improving fleet availability, service quality, safety standards, and network expansion to regain competitiveness in regional and international markets.

A former Tunisian commerce minister recently proposed that Tunisair consider issuing convertible bonds as a long-term refinancing strategy. The new bond issue marks a critical step in rebuilding the airline’s balance sheet and ensuring it remains a viable national carrier amid mounting financial pressures.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com