Jordan issues Eurobonds worth $1.25bln at coupon rate of 7.5%

Jordan issues Eurobonds worth $1.25bln at coupon rate of 7.5%

AMMAN: The Ministry of Finance and the Central Bank of Jordan on Tuesday announced completing the issuance of Eurobonds in global markets, with a value of $1.250 billion, at a fixed coupon rate of 7.5 per cent, due on January 13, 2029.

In 2023, the Ministry of Finance managed to reduce the coupon rate by 25 basis points in comparison with 2022, when the coupon rate stood at 7.75 per cent, despite the US Federal Reserve raising interest seven times since the 2022 issue.

Finance Minister Mohamad Al-Ississ said that the issuance aimed for a subscription volume of $750 million, but offers submitted by investors amounted to more than $4.7 billion, six times the target volume.

“This is a testament to the market believing in Jordan’s reform story,” Al-Ississ told The Jordan Times.

“A number of developing countries were unable to issue Eurobonds this year, including South Africa and Turkey,” the minister noted.

The number of subscribers exceeded 230, including some of the most important and largest global investment houses in the US, the UK Europe, Asia and the Gulf Cooperation Council countries.

Many investors praised the financial and monetary stability in Jordan despite the state of global economic instability during the previous years, which reduced