Jordan wrapped up the sale of a dual-tranche $1.5bn US-guaranteed Eurobond that lured $4.9bn in offers, finance minister Umayah Toukan said on Friday, June 26. The strong investor interest implies confidence in Jordan’s medium-term outlook in a welcome note to the government. In April, Standard & Poor’s affirmed its long- and short-term foreign and local currency ratings on Jordan at BB-/B. The outlook is stable.
Jordan sold a $1bn seven-year tranche, offering a 2.578% coupon. Another ten-year $500mn tranche, maturing in 2025, earned a 3% coupon to be paid bi-annually.
The ongoing foreign debt tapping is part of the Jordanian government’s programme to reduce dependence on the expensive domestic debt borrowing.
In June 2014, Jordan sold a $1bn five-year US-guaranteed Eurobond at a preferential interest rate of 1.945%.
Jordan will sell another non-guaranteed $500mn bond in Q4 this year, according to still unconfirmed reports. This implies that Jordan’s indebtedness will increase further in 2015. Still, the cheaper external debt borrowing will help cut the debt servicing and thus the budget gap.
US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more
Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more
Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more