(MENAFN- Kuwait News Agency (KUNA)) Jordan closed on its offering of a USD 1.5 billion in sovereign bonds on Tuesday, guaranteed by the US in part of its commitment to Jordanian stability, security, and economy, a State Department release indicated.
"The proceeds of the US-guaranteed bonds will help to ensure that Jordan can continue to provide critical services to its citizens as it hosts the nearly 630,000 Syrian refugees in Jordan," said the statement.
"The policy framework within the loan guarantee agreement is designed to support the implementation of specific economic reforms that the Government of Jordan has been pursuing to promote economic stability, growth and prosperity," it added.
The USD one billion seven-year and USD 500 million 10-year Jordanian sovereign bonds were supported by a 100 percent guarantee of the repayment of principal and interest by the US government. They were priced at coupon rates of 2.578 and three percent respectively.
President Barack Obama informed King Abdullah of the US' intention to provide these guarantees during their December 2014 meeting in Washington DC.
The United States has previously guaranteed Jordan's issuance of sovereign bonds worth USD 1.25 billion in 2013 and USD one billion in 2014.
"Both of the previous guarantees were successful in supporting Jordan's reform efforts during a time of regional instability," affirmed the State Department.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.