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Jordan partially renewed $1 billion Eurobond in 2022 — WB

World bank
(File photo: Jordan News)
AMMAN — Jordan only partially renewed a Eurobond worth $1 billion that matured in June of last year, issuing a separate $650 million Eurobond in the same month at a rate of 7.75 percent and a maturity of 5.5 years, according to the World Bank’s most recent Jordan Economic Monitor report.اضافة اعلان

A Eurobond is a debt instrument denominated in a currency other than that of the issuer's country, subscribed to by an international syndicate of financial institutions and sold to external investors.

According to the report, the bond issued by the Kingdom in June “was more than three times oversubscribed, reflecting investor’s confidence in Jordan and the continued access to foreign financial markets”, Al-Mamlaka TV reported.

To finance the remaining portion of the Eurobond, the government issued domestic bonds denominated in US dollars in July of 2022.

With this, multilateral loans — primarily from the International Monetary Fund and the World Bank — dominated Jordan's net external borrowing for the first eight months of last year.

Public debtMeanwhile, Jordan’s public debt service rose to 7.9 percent of GDP during the first eight months of 2022, compared to 6.6 percent during the same period of the previous year.

International rating agencies Fitch and S&P Global confirmed that Jordan's sovereign credit rating in foreign currencies had a stable outlook last year, while Moody's raised the credit outlook from "stable" to "positive", citing fiscal and economic reforms and flexible financing from the liquid banking sector, according to the report.
Jordan only partially renewed a Eurobond worth $1 billion that matured in June of last year, issuing a separate $650 million Eurobond in the same month at a rate of 7.75 percent and a maturity of 5.5 years, according to the World Bank’s most recent Jordan Economic Monitor report.
The report indicated that domestic borrowing and short-term issuances dominated the Kingdom’s debt during the first half of 2022, and, unlike previous years, the government issued short-term Treasury bills, while “repayment of Treasury bonds (notably those with longer maturities) exceeded the new issuances”.

Positive indicatorsJordan's continued economic recovery has had a positive impact on public debt developments despite the high budget deficit, according to the report. At the end of August 2022, the total government debt and government-guaranteed debt amounted to approximately JD37.8 billion — JD1.3 billion above the figure at the end of 2021.

A recent revision of GDP figures led to a decrease in the ratio of public debt to GDP in 2021 by 1.2 percent, to reach 112.2 percent of GDP, according to the report.

Total public debt, after excluding debts owed to the Social Security Corporation’s Investment Fund, amounted to JD30.3 billion by August 2022.


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