Jordan on Tuesday issued a double-tranche Eurobond of 1.75 billion U.S. dollars to inject liquidity to offset the impact of COVID-19 pandemic on the economy.
The bond includes 500 million U.S. dollars at 4.95 percent over 5-year maturity, and 1.25 billion dollars at 5.85 percent over 10-year maturity.
The double-tranche bond issue has been oversubscribed, attracting bids worth over 6.25 billion dollars, Jordanian Ministry of Finance said in a statement.
The high demand led to lower yield on the recently-offered Eurobonds, lessening the interest burden on the country going forward.
The rates were significantly lower than Jordan’s last Eurobond issuance in 2017 and the recent issuances by peer countries of similar ratings, Jordanian Minister of Finance Mohamad Al-Ississ said in the statement.
The funds raised by the issuance will cover the Eurobond maturing in October, worth 1.25 billion dollars, in addition to injecting liquidity into the private sector by paying arrears accumulated by both present and previous governments, said the minister.
“These arrears include those owed to hospitals, pharmaceuticals, energy, and contractors,” Al-Ississ said, adding that Jordan is using foreign financing to pump further liquidity to the domestic market, particularly in light of the coronavirus pandemic.