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Jordan signs agreement with US, to issue $1.5b bonds in June 2015

Jordan signs agreement with US, to issue $1.5b bonds in June 2015

AMMAN: the finance minister said that the Jordan has signed an agreement with Washington to raise $1.5 billion in the second half of June through the sale of US-backed bonds that will allow the kingdom to access global debt markets at cheap rates,.

Finance Minister Umayya Toukan said Jordan would also tap markets in the final quarter of 2015 to raise another $500 million, without US guarantees, to meet its pressing financing needs, worsened by the cost of accommodating more than 600,000 Syrian refugees. Part of the bond proceeds will be used to retire a $750 billion bond coming due at the end of the year, Toukan said.

JP Morgan and Citibank will manage the 7 to 10 year-term issuance. Toukan was speaking to reporters on the sidelines of the signing ceremony. The terms allow Jordan to borrow at the same rates as the US government with officials hopeful favorable market conditions will bring low interest rates close to last year’s 1.9 percent for the five-year bonds.