Deal of the month: Iraq’s first international sovereign bond

Author: | Published: 27 Mar 2017

Stepping up The US acted as guarantor of Iraq’s first international sovereign bond, a move which helped the Middle Eastern nation secure capital markets’ support to reduce its public deficit

The Republic of Iraq issued its first ever internationally sold sovereign bond in an effort to integrate itself into the international capital markets.

The $1 billion five-year deal, which is guaranteed by the US Agency for International Development (USAID), will be used to plug the frontier market's budget deficit prompted by the sustained drop in oil prices over the past few years. In many ways, it resembles a US Treasury bond, but with a slightly higher yield (2.149%).

The USAID's press release says the guarantee 'underscores the strong and enduring commitment of the US to support the government of Iraq in this critical moment in the fight against Daesh'. Iraq's Office of the Prime Minister's own statement reads:...



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