For the First Time in Public Finance Jordan Succeeds in Issuing "Eurobonds" worth $ 1 billion, maturing after 30 years
10/3/2017 3:14:45 PM
The ministry of Finance has announced its success in the issuing process of USD 1 Billion worth of Eurobonds in the international markets at (%7.375) service rate maturing after 30 years.
The total letters of applications volume has reached over $ 4.30 billion, four times the volume of the issue. The number of investors who participated in the IPO has also increased to 240 investment funds, including the largest international investment funds in the United States, the UK, and Europe.
The Ministry of Finance confirmed in a press release today that the implementation of this issue was part of the Government's approved plan to manage cash flows and public debt. The volume of the issue and its repayment maturity, which comes after thirty years, reflect the well established confidence of international investors and funds in the ability of the Jordanian economy to grow and move forward with its financial and economic reform program.
Minister of Finance, Omar Malhas, said in the statement that the success of this issue is a result of the great and unlimited efforts exerted by His Majesty the King aimed at enhancing the confidence of the international community in Jordan. His royal wise policy, active role, and efforts in strengthening and supporting financial reform programs in Jordan lead to strengthening the financial and monetary situation of the Kingdom.
Malhas also stressed that this issue came within the ceilings specified in the General Budget Law, stressing that this issue will not raise the public debt ratio from the target level and does not go beyond the government's plans in the financial reform program, especially that the financial reform program, in cooperation with the IMF includes measures to gradually reduce the ratio of total public debt to GDP from 95% to 77% by 2022.
The minister pointed out that the continuous support and guidance from Prime Minister Dr. Hani Al-Mulqi to implement the financial and economic reform program has had a great impact on the success of this issue which was covered in four hours of its issuance on the market. Minister of Finance also appreciated the efforts of the Governor of the Central Bank and his deputies in coordinating fiscal and monetary policies to maintain financial and monetary stability.
Secretary General of the Ministry of Finance, Dr. Ezzedin Kanakriyah, said that the proceeds of this issuance will be used to finance the treasury's needs, including the repayments of local bonds maturing by the end of this year, adding that this would allow the private sector to obtain the necessary funding To implement its financial plans.
Kanakriyah added this issuance conforms to the current public debt strategy, one of which is to increase debt maturity. It also aims to diversify funding sources, reduce borrowing costs and increase maturity of the public debt portfolio.
It is noteworthy that a team from the Ministry of Finance and the Central Bank was headed by Secretary General of the ministry, Dr. Ezzedin Kanakriyah and the membership of the Central Bank Deputy Governor Dr. Adel Charkas and representatives from the Ministry of Finance and the Central Bank last week started marketing tour. During the tour, they met with more than 60 international companies from major funds and investments. They explained Jordan economic and financial developments status and the ongoing measures and plans for the implementation of the financial reform programs.
The public offering in the global markets was managed By JP Morgan represented by Khaled Darwish and Citigroup, represented by Ziyad Qattami.