2012.07.16 22:36:44 U.S. Guarantees $485M Bond Sold by Tunisian Central Bank

By Alan Zibel

WASHINGTON--The U.S. Treasury Department said Monday that Tunisia's
central bank closed on a $485 million bond guaranteed by the U.S.
government.

The bond issued by the Tunisian Central Bank was guaranteed by the
U.S. Agency for International Development. The U.S. government has
guaranteed repayment of principal and interest payments on the
seven-year sovereign bond, priced at a 1.686% coupon.

Lael Brainard, Treasury's under secretary for international affairs,
said in a statement that the bond issue "demonstrates the U.S.
government's commitment to help restore Tunisia's economy" and finance
the country's development goals.

In April, Treasury Secretary Timothy Geithner and Tunisian Finance
Minister Houcine Dimassi signed a declaration of intent to move
forward on such a plan to have the U.S. government back principal and
interest in order to enable the Tunisian government to access
significant market financing.

The loan guarantee program was authorized by U.S. lawmakers last
December. The aim is to reduce the Tunisian government's borrowing
costs, as Tunisia grapples with economic woes exacerbated by slow
growth in Europe and high oil prices.


Write to Alan Zibel at alan.zibel@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

July 16, 2012 16:36 ET (20:36 GMT)