AMMAN — The
Finance Ministry and the
Central Bank of Jordan announced the successful completion of Eurobond issuance
process to global markets at a value of $1.25 billion and at a fixed rate of
7.5 percent.
اضافة اعلان
These are five-year bonds that are due in
January 2029.
This year, the ministry reduced the coupon
rate by 25 points on 2022, when it was earmarked at 7.75 despite the fact that
the
US Federal Reserve raised interest seven times since the previous issue.
Successful bond issueFinance Minister Muhammad Al-Ississ clarified
the issuance targeted a subscription volume of $750 million, however offers
submitted by investors amounted to more than $4.7 billion which is six times
the target volume, according to local media outlets.
He added this high coverage enabled them to
raise the value of the issue to $1.25 billion, indicating part of this amount
will be used to pay off previous more expensive debts.
250 completed in the subscriptionIssiss noted the number of investment
institutions participating in the subscription exceeded 230, including
important global investment funds in the US, UK, Europe, and GCC countries.
Many investors praised Jordan's financial and monetary stability, despite the global economic instability in recent
years, which reduced the risk premium for Jordan and therefore reduced the
bond's interest.
This has not been the case many other
developing countries who have not been able to issue Eurobonds because of the
lack of global investment in their financial and monetary instability.
Economic stabilityGlobal Investors confirmed Jordan was able
to achieve what it promised during the past years in terms of financial reforms
that maintained its economic stability.
Governor of the Central Bank of Jordan Adel Sharkas said the high demand for the Eurobond issue reflects the confidence of
international investors in Jordan's stability and wise leadership, in addition
to the solid fundamentals of the
Jordanian economy, supported by its prudent
fiscal and monetary policies.
This issuance comes within the financing
budget included in the
General Budget Law for the year 2023, and therefore it
falls within the expected debt for this year and will not increase its value.
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