Tunisair (TU, Tunis) has approved a bond issue worth TND150 million dinars (USD51.5 million), to be completed in one or multiple tranches over 12 months, aimed at bolstering the airline's operations amid ongoing equity challenges.
The bond issuance was authorised during the airline's ordinary general meeting on September 10, with the board of directors granted full power to determine the terms and conditions, according to the resolutions adopted at the meeting.
The board confirmed the continuity of operations despite equity capital remaining below half of its share capital as of December 31, 2021. Tunisair reported a net loss of TND266 million (USD91.5 million) for the 2021 Fiscal Year, with a cumulative equity deficit exceeding TND1.8 billion (USD620 million). Auditors will be appointed to prepare reports for the fiscal years 2022, 2023, and 2024, as previously reported.
A former Tunisian commerce minister recently suggested that the struggling state-owned carrier should issue bonds convertible into shares to refinance itself.
In early 2025, the Tunisian government ordered urgent action to stabilise Tunisair. Transport minister Rachid Amri has set an October deadline for the airline to come up with a recovery plan to enhance fleet availability, service quality, safety, and network expansion to increase market share.
