58000
Iraq Announces Sale of $1b in Bonds
World Economy

Iraq Announces Sale of $1b in Bonds

Iraq announced the sale of $1 billion in bonds guaranteed by the United States, paying an interest of 2.1%, far below the 9% yield on the country’s non-guaranteed debt.
The US-guaranteed five-year bonds were issued on Wednesday, the finance ministry said in a statement on Sunday, Reuters reported.
The Iraqi government, which relies almost exclusively on oil income, has struggled to pay its bills since crude prices dropped in 2014, the same year that Islamic State militants seized a third of the country’s territory.
The Iraqi government in November said it plans to issue $2 billion worth of bonds on international markets to help narrow its budget deficit in 2017.
The bonds will be sold in two equal tranches of one billion dollars each, one of them with a US guarantee that would reduce its cost of borrowing, it said.
Iraq has a speculative rating of B/B- from both S&P and Fitch. It has a $2.7 billion in international bonds due in 2028 with a coupon of 5.8%, currently yielding about 9%.
Meanwhile, to replace missing oil revenue, Iraq has turned to the International Monetary Fund for a loan package that would also serve as the basis for other lenders to provide support.
The IMF approved a three-year, $5.34 billion standby loan in July, in exchange for a package of economic reforms. Baghdad hopes that will unlock over $12 billion in additional aid from sources such as the Group of Seven leading industrialized nations.

Short URL : https://goo.gl/gg9VRq
  1. https://goo.gl/yHbxxo
  • https://goo.gl/9wlucF
  • https://goo.gl/72mvLX
  • https://goo.gl/5ef10z
  • https://goo.gl/sgnKwT

You can also read ...

Lowe’s Q2 Profit Jumps 21.6%
Lowe’s Inc the number-two US home improvement retailer,...
Google and Walmart are set to start a partnership through which thousands of Walmart products are offered through the Google Home voice-controlled speaker.
Lowe’s Inc the number-two US home improvement retailer,...
There were rallies on Wall Street overnight due to US President Donald Trump’s comments.
Asian indexes put in mixed performances on Wednesday following...
Italian 10-year yields climbed 6 basis points to  a 3-1/2-week high at 2.17%
Eurozone bond yields rose on Wednesday, with Italian yields...
Toshiba, Western Digital Start Talks on Memory Sale
Toshiba has begun negotiations with business partner Western...
Blackstone Explores $7b IPO of Gates Global
Private equity firm Blackstone Group LP is exploring an...
China Court Awards US Co. $1.5m in Court Case
A Chinese court has ordered three domestic shoemakers to pay...
Identity Fraud Soars to New Highs in UK
Cifas, the UK’s leading fraud prevention service, has released...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus