By Increasing the Volume of Bonds Previously Issued in the Global Markets Jordan succeeds in Issuing Eurobonds Worth $ 500 Million
5/1/2017 10:57:43 AM
The Ministry of Finance announced the successful completion of the issuance of $ 500 million in Eurobonds in the international markets at 5.875% rate.
In a press release issued today, The Ministry of Finance confirmed that this issuance is in line with the planned increase in the volume of Eurobonds that was issued previously in November 2015 from $ 500 million to $ 1 billion, which is due in January 2026.
The total investors IPO has reached more than $ 1.7 billion, which is more than three times the size of the issue. The Ministry also noted that the number of participating funds in the IPO was about 150, and they were from the largest international investment funds in the United States of America, the United Kingdom and Asia, and some funds from the GCC.
It is worth mentioning that Jordan's success in issuing Eurobonds reflects His Majesty great efforts exerted to attracting investments, enhancing investor confidence in Jordan's economy, and the efficacy of government efforts and procedures in implementing the financial reform program. This issue comes within the approved cash flow plan for 2017, In line with the public debt strategy aimed at diversifying sources of finance, and reducing borrowing costs and increasing the maturities of the public debt portfolio.
The management of the IPO was conducted by JPMorgan represented by Mr. Khalid Darwish and Citigroup represented by Mr. Ziad Al Qatami.
The Standard & Poor's credit rating report issued last week indicated that the government gained further accomplishment in their path towards reducing the budget deficit, which is part of the government measures aimed at reducing the total ratio of public debt to GDP gradually from 95% this year to about 77% by 2021.