AMMAN: The Jordan Times Tuesday stated that Jordan is expected to issue a $1.5 billion international bond with a US guarantee in June 2015 and another non-guaranteed bond worth $500 million in the last quarter of this year.
The source, who requested anonymity, said part of the proceeds of the bonds will be used to pay off a $750 million bond that will be due at the end of the year. The source said bond issuances on international markets will continue in the coming years in both formats: US-guaranteed or non-guaranteed sovereign bonds.
Bonds guaranteed by the US government secure Jordan low-cost financing and eases the pressure on local banks, the official reiterated. The upcoming issuance will be the third international market bond guaranteed by the US government. On June 26, 2014, Jordan closed its offering of a $1 billion, five-year sovereign bond issuance that was supported by a 100 percent guarantee of the repayment of principal and interest by the US. According to the US State Department, last year’s $1 billion issuance was priced at a coupon rate of 1.9 percent.
