Rolaxy Bonds Launch New Financial Tool at Algiers Exchange

The Algiers Stock Exchange recently marked a significant financial innovation with the commencement of its first official trading operation for Islamic participation bonds. This initial offering, which took place on Thursday, October 8, involved 171,000 subscribed participation bonds from the company Rolaxy. This represented a 42.75% response rate to the 400,000 bonds initially offered to professional and institutional investors. Each bond was valued at 1,000 Algerian Dinars, with an issuance period of seven years and an effective date starting January 1, 2025.

Unlike traditional shares that represent equity, these participation bonds function as debt instruments, granting the holder a financial right from the issuing company. Their structure includes both a fixed component, determined by the company, and a variable part linked to the company's operational activity. This introduction is seen as a crucial step in diversifying the financial instruments available in Algeria's capital market, aligning with the investment needs and project timelines of various enterprises.

Youssef Bouzenada, Chairman of COSOB, highlighted this operation as a new stage in developing the Algerian financial market and strengthening its role in corporate financing, describing the experience as "successful and encouraging." Amal Salmoun, the Director General of the Algiers Stock Exchange, further noted the broader market's growth, stating that the number of listed companies has risen to ten, comprising five public and five private entities. The stock market's capitalization now exceeds 685 billion Algerian Dinars, with three debt bonds currently traded, underscoring the positive trajectory of the national exchange.