US Backs Jordan Loans

Jordan and the US on 31 May signed a new loan guarantee agreement, under which the US will guarantee repayment of principal and interest on the issuance of up to $1.5bn in bonds, with tenors not exceeding 10 years.

This is the third US loan guarantee for Jordan, which had previously issued US-guaranteed sovereign bonds worth $1bn in 2014 and $1.25bn in 2013 (MEES, 15 August 2014).

With the guarantee now in place, the Jordanian government is gearing up to issue its $1.5bn bond in the second half of June, Jordanian finance ministry official ‘Izz al-Din al-Kanakriya says. The bond will be tranches of seven and ten years, he adds, without indicating if a mandate has been issued to banks to lead manage the issue. (CONTINUED - 364 WORDS)