Investor bids exceeded three times the targeted issuance value.

High demand reflects investor confidence in the Jordanian economy.

Amman, November 4 (Petra) – The Ministry of Finance, the Ministry of Planning and International Cooperation and the Central Bank of Jordan (CBJ) announced on Tuesday 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.

This issuance represents 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 reduction is attributed to improved economic and financial performance.

Finance Minister Abdul Hakim Shibli stated that the issuance targeted a subscription volume of US$700 million, but the bids submitted by investors exceeded three times the issuance amount.

This demonstrates investor confidence and the continued improvement in economic growth, with the Jordanian economy projected to grow by 2.7% in the first quarter of 2025 and 2.8% in the second quarter of 2025.

He indicated that the proceeds from the issuance will be used to repay Eurobonds issued ten years ago, maturing on January 29, 2026.

He noted that a large number of investment institutions participated in the subscription, including some of the largest and most prominent global investment funds in the United States, the United Kingdom, Europe, Asia and the Gulf Cooperation Council (GCC) countries.

CBJ Governor Adel Sharkas explained that the Jordanian economy is robust and based on solid economic foundations, contributing to the maintenance of sustainable economic growth rates, public finance stability and the sustainability of public debt.

This is part of a strategy aimed at replacing high-cost debt with lower-cost debt, thereby reducing the debt service burden on the general budget.

Sharkas added that the high demand for the bond issuance reflects the confidence of the international community and international investors in the fiscal and monetary policies and the strength of the Jordanian economy.

Many investors praised the Kingdom's financial and monetary stability despite the instability in the region, which contributed to lowering the Kingdom's risk factor and consequently, the bond interest rate.

Minister of Planning and International Cooperation Zeina Toukan stated that Jordan enjoys strong international relations thanks to the tireless efforts led by His Majesty King Abdullah II.

She added that Jordan possesses a comprehensive reform vision for the coming years, particularly its economic modernisation vision, which has strengthened the international community's confidence in the performance and sustainability of the Jordanian economy and has attracted investors to subscribe to the bonds.

This issuance is part of the financing budget included in the 2025 General Budget Law, to repay Eurobonds due at the beginning of next year, and therefore it falls within the expected debt for this year.

//Petra// AK