Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Iraq plans new bond as 3.3 million oil barrels a day gush  Join our daily free Newsletter

MENAFN - Khaleej Times - 26/10/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) "We formed a committee to decide on the details for the bond issue, which will most probably be of medium- to long-term maturity," Deputy Finance Minister Fadhel Nabi said in an October 22 phone interview from Baghdad. "The joint committee from the Finance Ministry and the central bank will also decide on the timing, which can be within a year," he said, declining to give more details.

Iraq, with the world's fifth-largest oil reserves, boosted income from crude sales by 23 per cent from June to August and earned 6.5 billion in September, data compiled by Bloomberg show. The country is pumping 3.3 million barrels a day amid attacks that killed more people in the first nine months of this year than in all of 2012. Government debt as share of gross domestic product should drop to 25 per cent this year from about 800 per cent a decade ago, Standard Chartered said on October 20.

The extra yield investors demand to hold Iraq's dollar bonds rather than Treasuries has tumbled 143 basis points, or 1.43 percentage points, since this year's June 25 peak to 510 basis points on Thursday, according to JPMorgan Chase & Co's EMBI Global indexes. The spread between Treasuries and Middle Eastern bonds narrowed by 37 basis points in the period.

"Iraq's yield is very attractive, underpinned by strong government finances and a fiscal position," said Ahmad Alanani, Dubai-based director for the Middle East at Exotix Ltd.

"I'd take Iraq risk today over some of the more vulnerable places in the Middle East."

The yield on Iraq's 5.8 per cent dollar bond maturing in January 2028 dropped to 7.275 per cent today from a high for this year of 8.803 per cent on June 24, according to data compiled by Bloomberg. The bond began trading at about nine per cent in 2006.

Iraq issued 2.7 billion in securities to help restructure debt accumulated during the era of former president Saddam Hussein. The bond is the country's only dollar-denominated debt and equates to about 1.2 per cent of 2012 gross domestic product, Geoffrey Batt, managing director of the 82 million Euphrates Iraq Fund, said in an October 22 e-mail.

"It's tiny compared to Iraq's financial resources, and there's little doubt the country can meet its obligations," he said.

As government borrowing continues falling as a share of GDP, Iraq may find it easier to return to capital markets, particularly for long-term infrastructure projects, Standard Chartered said in its report this week.

Nabi, the deputy finance minister, confirmed in his interview that Iraq's next bond would help pay to rebuild infrastructure damaged by decades of war and sanctions.

Even so, the government's plan for a second bond is less than certain. Iraq said more than two years ago, in July 2011, that it would come to market in a year.

Iraq's efforts to rebuild its economy 10 years after the US-led invasion that ousted Hussein are hobbled by political in-fighting and sectarian strife. A dispute between the central government and the semi-autonomous Kurdish region led the Kurds to suspend oil exports through a national pipeline in December.

 


Khaleej Times




  MENA News Headlines
 May 5 2015 - Spring weather conditions forecast over next three daysJordan News Agency
(MENAFN - Jordan News Agency) A rise in temperatures is expected on Tuesday and the weather will be moderate in most parts of the Kingdom and warm in the Jordan Valley and Aqaba.According to the ...

 May 5 2015 - U.S led-coalition conducts 22 airstrikes against Daesh in IraqJordan News Agency
(MENAFN - Jordan News Agency) Coalition military forces in a statement said it had launched 22 airstrikes against Daesh terrorist gang in Iraq during the past 24 hours.The strikes hit tactical units ...

 May 5 2015 - Israeli forces arrest 11 Palestinians in the West BankJordan News Agency
(MENAFN - Jordan News Agency) Israeli occupation soldiers on Tuesday arrested 11 Palestinians in the West Bank.Palestinian Interior Ministry said that the occupation forces stormed the towns of ...

 May 5 2015 - Red Cross issues 24 travel documents for Syrian refugeesJordan News Agency
(MENAFN - Jordan News Agency) A total of 24 travel documents were issued recently by the International Committee of the Red Cross (ICRC) to Syrian refugees in Jordan who were granted resettlement ...

 May 5 2015 - 7th Jordan AFAQ Economic Forum to be held in Amman next TuesdayJordan News Agency
(MENAFN - Jordan News Agency) The 7th Jordan AFAQ Economic Forum will be held in Amman next Tuesday with the participation of economic and financial experts as well as companies from 10 nations, ...

 May 5 2015 - TAG signs two agreements to promote Italian languageJordan News Agency
(MENAFN - Jordan News Agency) The Talal Abu Ghazaleh (TAG) organization and the Italian Embassy in Jordan signed a cooperation agreement Tuesday to promote the Italian culture and language.Under the ...

 May 5 2015 - IMF expects 3.8% GDP growth in Jordan in 2015Jordan News Agency
(MENAFN - Jordan News Agency) The Regional Economic Outlook Update, released Tuesday in Dubai, projected that Jordan's Gross Domestic Product (GDP) will grow by 3.8 per cent this year and 4.5 per ...

 May 5 2015 - Specialized training course on ethical hacking concludes at RSS in JordanJordan News Agency
(MENAFN - Jordan News Agency) A specialized training course entitled "Certified Ethical Hacking" concluded at the Royal Scientific Society (RSS) Tuesday.The training course, which was held by the ...

 May 5 2015 - UNFPA calls to enhance quality of midwives servicesJordan News Agency
(MENAFN - Jordan News Agency) The Executive Director of the United Nations Population Fund (UNFPA), Babatunde Osotimehin, called for greater investments to increase the number of midwives and enhance ...

 May 5 2015 - VOL 1 - Companies need to balance expectations of all stakeholders: Bharat WakluKNN India
(MENAFN - KNN India) Today's companies need to balance needs, expectations and aspirations of all stakeholders. They should also have a mechanism by which if there is a tie between the expectations ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help