Amman: The Ministry of Finance, the Ministry of Planning and International Cooperation, and the Central Bank of Jordan (CBJ) announced the successful completion of a $700 million Eurobond issuance in international financial markets at a fixed interest rate of 5.75% for a seven-year term, until November 2032.
According to Jordan News Agency, this issuance marks a 1.75% reduction in the interest rate compared to the 2023 issuance, which carried a 7.5% interest rate for a five-year term. The interest rate reduction is attributed to improved economic and financial performance in Jordan.
Finance Minister Abdul Hakim Shibli revealed that the issuance targeted a subscription volume of $700 million, but investor bids exceeded three times the desired amount. This indicates strong investor confidence and an optimistic outlook for the Jordanian economy, which is projected to grow by 2.7% in the first quarter of 2025 and 2.8% in the second quarter of 2025.
The proceeds from this issuance are intended to repay Eurobonds issued ten years ago, maturing on January 29, 2026. A large number of investment institutions, including some of the largest global investment funds from the United States, the United Kingdom, Europe, Asia, and the Gulf Cooperation Council (GCC) countries, participated in the subscription.
CBJ Governor Adel Sharkas emphasized that the Jordanian economy is robust, supported by solid economic foundations that contribute to sustainable economic growth rates, public finance stability, and the sustainability of public debt. This issuance is part of a broader strategy to replace high-cost debt with lower-cost alternatives, reducing the debt service burden on the national budget.
Sharkas noted that the high demand for the bond issuance reflects the confidence of the international community and investors in Jordan's fiscal and monetary policies and economic strength. Despite regional instability, many investors have praised Jordan's financial and monetary stability, which has contributed to lowering the Kingdom's risk factor and, consequently, the bond interest rate.
Minister of Planning and International Cooperation Zeina Toukan highlighted Jordan's strong international relations, bolstered by the efforts of His Majesty King Abdullah II. She also pointed out the country's comprehensive reform vision, particularly its economic modernization strategy, which has enhanced international confidence in the sustainability and performance of the Jordanian economy and attracted investors to the bonds.
This issuance is part of the financing budget outlined in the 2025 General Budget Law, intended to repay Eurobonds due early next year, aligning with the expected debt for this year.