The Jordanian authorities announced the successful issue of Eurobonds worth $650 million with an interest rate of 7.75 percent and a maturity in 5 and a half years.
The official Jordanian agency quoted Finance Minister Muhammad al-Isas as saying that the issuance of Eurobonds (a debt instrument used by governments to finance their projects and which provides a good return for investors in exchange for acceptable risks) is aimed at a subscription volume of $500 million , but there were more than three times as many offers from investors, totaling about $1.8 billion.
Al-Isas noted that “the high coverage allowed the ministry to raise the cost of the issue to $650 million.” He explained that the number of investment institutions participating in the subscription has exceeded 100, including the largest global investment funds in the United States of America, the United Kingdom, Europe, Asia and the Gulf Cooperation Council countries.
The bond issue is part of the Jordanian government’s approved cash flow and public debt management plan for the current financial year. This is also included in the funding budget included in the 2022 General Budget Law.
The ministry stressed that the bond issue “will not lead to an increase in the cost of public debt.”
In cooperation with the International Monetary Fund, Jordan is implementing an economic reform program, one of the points of which is the gradual reduction of the ratio of total public debt to GDP from 95 percent now to 77 percent by the current 2022.
Source: El Iktisad
