Beirut (APD) - Cevital, an Algerian private food group, on Monday raised $68.3 million (DZD 5 billion) by selling bonds to eight banks and institutions, the Algerian Press Service news agency reported Tuesday.
The report did not provide further information on the bonds issue.
Cevital, is the first privately owned company to join the Algerian bond market, which currently counts seven public firms. These enterprises - Sonatrach, Socit de Refinancement Hypothcaire, Sonelgaz, Air Algerie, Algerie Telecom, Entreprise Nationale des Travaux aux Puits, and Entreprise Nationale de Forage - account for bonds of almost DZD 120 billion ($1.64 billion).
The country's treasury bond market was initiated in 1995 when the Algerian Treasury authorized 13 primary dealers, including state-owned banks and insurance companies, and one private insurance company.
In 2004, Algerie Clearing, a joint stock company, was officially established as the central depository for all securities in Algeria.
Algeria's stock exchange was established in 1998 but remains largely nascent since only three companies are listed: Saidal Group, Eriad Setif, and El Aurassi Hotels.
Algeria recently received support from the World Bank and the European Union in modernizing its financial sector.
Cevital is an industrial conglomerate situated in the eastern port of Bejaia. It owns a cooking oil treat plant, which produces 570,000 tons per year (tpy), a sugar refinery that produces 600,000 tpy, and a margarine production unit with output of 180,000 tpy. The company also owns storage facilities and a loading terminal in the port of Bejaia. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
