Jordan’s $1.25bn sovereign Eurobond was snapped up by investors last week, coming in $2.2bn oversubscribed, Minister of Finance Umayya Tuqan announced on 29 October. The seven-year issue saw attractive pricing at a coupon of 2.503% until maturity in 2020. Interest is payable every six months until maturity.
The guarantee, provided through the US Agency for International Development, is part of an agreement reached in August between Jordan and the US, under which the US would guarantee principal and interest on the issue of a Jordanian sovereign bond of up to $1.25bn. This guarantee allows Jordan to obtain external financing at competitive interest rates, at par with US government, and at the same time reduce debt servicing payments (MEES, 23 August). (CONTINUED - 294 WORDS)