The Central Bank of Iraq (CBI) last week issued a directive to private banks in the country to begin “promoting” the country’s first post-2003 domestic bond issue. The “Binaa (construction) First Tranche” bonds will be denominated in Iraqi Dinar (ID) with the purpose of “supporting” the government’s fiscal spending in accordance with article two of the budget passed by parliament in March (MEES, 9 April).

Two offerings will be available: ID500,000 ($345) bonds with a 6% annual return and two-year maturity, and ID1mn ($690) bonds paying 7%/year over four years. The aim is to raise a total of ID1 trillion ($690mn) from the ‘First Tranche’ offering, a senior government figure tells MEES. (CONTINUED - 780 WORDS)