The stock market announces the launch of the circulation of national bonds issued by the Central Bank of Iraq

[Laid Back]

This is a good signal..... Investors believe in Iraq and his potential.

 

Go investment 

Go private sector

Go diversification of the economy

Go success 

[ChuckFinley]

Agree LB. This is an excellent news. Getting people on board will build confidence national and international.  

[Wiljor]

Thanks Englishman, Laid Back, ChuckFinley this article is short and sweet but tells a lot. We know iraq has all the potential to be the powerhouse of the ME and since the liberation of Mosul we can see a flurry of activity taking place. As the situation stabilizes further in Iraq we will see investor confidence grow and the snowball effect begin to take shape, Citi, Duetsche Bank, and J.P. Morgan are heavy hitters, that coupled with the words huge demand, makes me see we are heading to our final goal 

[Wiljor]

 

 

http://iraqdailyjournal.com/story-z15698361

 

IRAQ IN MARKET TO RAISE $1 BILLION, FIRST STANDALONE BOND IN OVER DECADE

Iraq, August 3, 2017 Iraq started marketing a $1 billion bond on Wednesday, its first international debt issuance as a standalone credit since 2006 and an attempt to put decades of turmoil behind it. With huge oil reserves behind it, the bond was seeking to tempt emerging market investors with alluring profits — necessary to offset concerns over a history of war and the recent rise of militant group Islamic State. Iraq issued $1 billion in bonds last January, but that offering was 100 percent guaranteed by the U.S government. This time it is alone.   A document issued by one of the banks leading the deal showed an initial price guidance for the bond, with a maturity of five and a half years, in the low 7 percent area. That level would be considered “attractive” by some fund managers. It is a yield comparable with that of Ukraine, another conflict-troubled emerging market. The transaction is expected to gather significant demand from U.S. and European investors looking at emerging markets for yield they cannot get elsewhere. Pension funds, fund managers and sovereign wealth funds are likely to take a good share of the paper, fund managers said. Iraq needs external financing to plug a widening budget deficit which lower oil prices since 2014 and the slow pace of much needed fiscal reforms have inflated to approximately 25 trillion Iraqi dinars ($21.44 billion) for 2017, according to the bond prospectus. Out of a deficit of 25 trillion Iraqi dinars, 23.3 trillion will be raised through domestic and international borrowing, according to Iraq’s 2017 supplementary budget. Commercial banks, bond investors and international lenders, including multilateral institutions such as the International Monetary Fund, World Bank and the Organisation for Economic Cooperation and Development are estimated to contribute approximately 11.5 trillion dinars. The support Iraq gets from development finance institutions is a form of an implicit guarantee for investors. Elections Ahead When compared with similarly rated countries across emerging markets such as Ukraine and Ghana, Iraq has the advantage of not having any immediate solvency concerns, and sizable commitments of donors for reconstruction purposes. It is less of a credit risk than some of its peers, but upcoming parliamentary elections in spring 2018 and, potentially, ensuing political instability are all risks that will be factored in the final pricing, fund managers said. Iraq’s bond could also benefit from extra liquidity coming from yield-hungry investors exiting riskier assets. “People potentially exiting distressed high yield names in the emerging markets space would look to participate in a new high yield issue given that they would get liquidity in the primary market rather than in the secondary,” said Max Wolman, senior portfolio manager at Aberdeen Asset Management. Country representatives met fixed income investors in the United States earlier this week, ending last Tuesday a roadshow which stopped in London, Boston and New York. Citi, Deutsche Bank and JPMorgan are the joint lead managers. Iraq is rated B- stable by S&P and Fitch. ekurd

[Boozer]

7% and I get 1.20 %, where do I get in on this 

[yusofsabri]

Someone says that Iraq was fully released from Chapter IIV of the UN Charter. Anyone here could clarify this?

[dinareffic]

This demand is ultimately going to have a positive effect on dinar 

[sandfly]

get every body on the ship and let it sail 

[yota691]

ANANOL: Iraq is a $ 1 billion bond market in the first "international debt" it has been selling for 11 years

 

 

Economy     access_time 2017/08/03 11:21  Number of readings: 166

 

 

Baghdad today - follow up

Iraq has begun to market "one billion dollars" in its first "international debt" sale since 2006, in an effort to overcome decades of turbulence, the Anatolia news website reported.

"Iraq, in possession of huge oil reserves, behind the bond issue, is seeking to attract emerging market investors with attractive profits, which will be necessary to ease concerns over the record of wars and the rise of a hawkish organization.

"Iraq issued billions of dollars in bonds in January, but that offer was guaranteed by the US government in full, unlike this time that Iraq returns to the market on its own."

"A document issued by one of the banks managing the process showed that the indicative pricing of the five-and-a-half-year bonds is at the early 7 percent, which is attractive from some fund managers' perspective, With other emerging markets suffering from conflicts such as Ukraine. "

"Pension funds, fund managers and sovereign wealth funds are likely to have a good share of the issue." Iraq needs external financing to fill a large budget deficit, "the paper said, revealing that" the fall in oil prices since 2014, the slowdown The pace of fiscal reforms that the country badly needs has increased the deficit to 25 trillion dinars ($ 21.44 billion) for 2017, according to the prospectus.

"There are also 23.3 trillion dinars expected to be raised through domestic and external borrowing, according to Iraq's supplementary budget for 2017. Commercial banks, bond investors and international lenders, including institutions such as the IMF, the World Bank and the Organization for Economic Co-operation and Development, Trillion dinars. "

The Anatolia news agency quoted the Central Bank of Iraq as announcing that "the end of the second phase of the country's commitments to the reforms required within the second phase of the Convention on credit readiness concluded with the International Monetary Fund."

"The IMF congratulated him and the Ministry of Finance and the Prime Minister's Office on the success of the second audit consultations on the credit preparation agreement, after implementing the programs and financial and monetary targets and putting them within the framework of securing the financial stability of Iraq," she said. The credit preparation is intended by the Central Bank, in cooperation with the government, to take measures and impose laws that would achieve the financial stability of the state in preparation for obtaining financial assistance or loans.

She added that "the program of credit readiness included a number of reforms and objectives, the latest of which was the supplementary budget recently approved by the House of Representatives."

"The measures and regulations put in place will give an important signal to international institutions and major countries to provide financing and credit facilities to support the financial situation in Iraq, by providing funding for the state budget and for various development projects," she said.

"Iraq's obligations with the International Monetary Fund (IMF) come from the country's need for financial loans to deal with the stifling crisis in the country's economy," said Anatolia, quoting a member of parliament's finance committee, Sarhan Ahmed. "Iraq is going through a severe financial crisis caused by financial and administrative corruption Lower oil prices and increased war spending on a dodgy, so we have to foreign financial loans.

"The cost of reconstruction of liberated areas requires a large amount of financial loans from different countries, and some of the loans have already been obtained from Japan, the IMF or the World Bank," Ahmed said.

The Iraqi government last month announced a plan to reconstruct the areas affected by the battles of the organization calling for the north and west of the country for 10 years at an estimated cost of $ 100 billion.

Infrastructure in the provinces under the control of Dahesh has suffered heavy losses, including power projects and government installations, estimated at billions of dollars 

 

[King Bean]

9 hours ago, yusofsabri said:

Someone says that Iraq was fully released from Chapter IIV of the UN Charter. Anyone here could clarify this?

Not true. And I think you mean Article VII (7) and move to Article VIII (8). The Oil for Food program was officially closed on June 30th and Iraq received the balance in that account, $131M. I am not the expert on this but I believe there is still an outstanding issue of the $5B Iraq still owes Kuwait from their invasion back in the 90's. I've not seen anything official from UN releasing Iraq from those restrictions. And it would be BIG news when that happens, everywhere. So watch, wait. But they're getting there. Others chime in if I am wrong or mis-informed. Thanks.

[DinarDavo]

4 minutes ago, King Bean said:

Not true. And I think you mean Article VII (7) and move to Article VIII (8). The Oil for Food program was officially closed on June 30th and Iraq received the balance in that account, $131M. I am not the expert on this but I believe there is still an outstanding issue of the $5B Iraq still owes Kuwait from their invasion back in the 90's. I've not seen anything official from UN releasing Iraq from those restrictions. And it would be BIG news when that happens, everywhere. So watch, wait. But they're getting there. Others chime in if I am wrong or mis-informed. Thanks.

 

Agreed KB....I have been negged a few times for suggesting that there was more to the release as Iraq reached and surpassed multiple objectives on their way to status as a sovereign nation. My question is, why is Kuwait providing a $100B grant for reconstruction, (not a loan if translation is correct) if Iraq still owes them $5B?

[Rmc10]

9 minutes ago, DinarDavo said:

 

Agreed KB....I have been negged a few times for suggesting that there was more to the release as Iraq reached and surpassed multiple objectives on their way to status as a sovereign nation. My question is, why is Kuwait providing a $100B grant for reconstruction, (not a loan if translation is correct) if Iraq still owes them $5B?

 

I was wondering the same thing. 

[yusofsabri]

1 hour ago, King Bean said:

Not true. And I think you mean Article VII (7) and move to Article VIII (8). The Oil for Food program was officially closed on June 30th and Iraq received the balance in that account, $131M. I am not the expert on this but I believe there is still an outstanding issue of the $5B Iraq still owes Kuwait from their invasion back in the 90's. I've not seen anything official from UN releasing Iraq from those restrictions. And it would be BIG news when that happens, everywhere. So watch, wait. But they're getting there. Others chime in if I am wrong or mis-informed. Thanks.

Thanks for your insight KB 

[ChuckFinley]

I think I read sometime back that Kuwait gave Iraq some kind of deal on the 5B, with the UN monitoring. I believe it was a push that would not be held against them, but they still owe payment sometime in the future. 

[yota691]

Iraqi bonds are offered in the Irish market at a rate of 6.752% per annum

Currency

Economy News Baghdad: An Iraqi government official said on Saturday that Iraqi bonds would be offered on the Irish stock market at a rate of 6.752 percent a year. The source, who preferred not to be named for the "Economy News", that "based on the law of the general budget for 2017, including the issuance of foreign bonds worth one billion dollars and with the approval of the Council of Ministers has been successful issuance of Iraqi international bonds in the global financial market for five and a half years and a benefit of 6.752 Annually. " "Citibank, Deutsche Bank and JPMorgan, as well as the Iraqi Trade Bank as the issuing manager, have made the technical arrangements for issuing these bonds," he added. "Bonds will be listed this year on the Irish stock market and are tradable in emerging markets."     Views : 228   Date Added 05/08/2017

[Officiallytook]

 

[Big_J]

GM YOTA AND DV.

[ChuckFinley]

Excellent news. These bonds are getting some much needed visibility. 

[yota691]

After the Tigris .. Euphrates another sovereign international support for Iraq in the global capital market

Release date: 2017/8/5 17:04 • 348 times read

{Iraq: Al-Furat News} Iraq issued an external sovereign bond in the name of {Euphrates} in the global capital market after the first bond in the name of {Tigris}.

A statement by the Prime Minister's Advisor for Financial Affairs, the appearance of Mohammed Saleh received the agency {Euphrates News} a copy of it today, "Iraq issued on Wednesday, 2 August 2017 an international sovereign bond bearing the name of {Euphrates} the duration of the bond is 5 years and the interest rate is 6.75% six months ". 
Saleh added, "Sindh was classified by Fitch for credit rating B, and the number of international investment companies that submitted for the purchase and competed with about 350 global investment companies with investment facts more than $ 12 trillion and have applied for the purchase of Sword Euphrates approached $ 6 trillion oversubscribed, including the Abu Dhabi Investment Fund, the Arab Monetary Fund and the California Education Fund, one of the wealthiest funds in the US West Coast and the world. " 
He said "

[yota691]

Balnfograf .. Know the support of "Euphrates" offered by Iraq on the Irish Stock Exchange

1590

[DinarThug]

(by don961)

: Iraq issued a sovereign bond {Euphrates}

06/8/2017 12:00 am  Baghdad / Hussein Thugb  In a move that strengthens the confidence of the world in Iraq and for the first time the intervention of the Republic of Iraq itself to promote and abuse the Iraqi international debt in the global capital market for debt,  Financial Advisor to the Prime Minister Dr. The appearance of Mohammed Saleh confirmed to the "morning" that the sovereign international sovereignty of Iraq bears the name "Euphrates" and the value of $ 1 billion issuances, pointing out that this measure gives a strong signal to investors to deal with Iraq with high confidence, as well as the possibility of funding the general budget flexible external or international Are global financial markets and not multilateral financial institutions or institutions.  He pointed out that the important thing in this subject is the confidence of investors in the Iraqi economy and the strength of the national economy promising victory in the front of the war on terrorism, and we are now reaping the results of the victory really.  Saleh Bin said that the number of international investment companies that have offered to buy and compete against it amounted to about 350 global investment companies with investment portfolios of more than 12 trillion dollars and have applied for (buy) and approached the barrier of $ 6 trillion oversubscribed, including the Abu Dhabi Investment Fund and the Monetary Fund And the Education Fund in California, one of the wealthiest funds in the US West Coast and the world.  He confirmed that the sale took place on Wednesday, 2 August 2017 in London by the underwriters and the bond was registered for sale and purchase in the Irish stock market, using the standards of the European Union, one of the most easy and efficient financial markets, and the lowest category of bond is 200 thousand dollars and multiples .  He pointed out that the interest paid half a year and thus issued by the Republic of Iraq in 2017 successive international sovereign debt syndicates linked to trading in the international capital market until the first day (Tigris) benefit of 2, 149% value of issuances 1 million dollars guaranteed by the US government. Today, the second sovereign bond (Euphrates) secured by the Government of the Republic of Iraq has been issued and classified as B-credit and carries interest at about  6, 75%, which is less than the Iraqi international bond traded in the secondary secondary markets since 2006 (to settle the debts of the Paris Club trade name 20 - 28 and its benefit or yield it at 7, 6% currently.  He explained that the average annual interest rate on the Tigris and Euphrates versions (blinded according to the wacc is 4.4% per year).   http://www.alsabaah.iq/Article.....?ID=142043

[yota691]

08/07/2017 (00:01 pm)   -   Number of readings: 244   -   number (3989)

 

 

Parliamentary Economic: Issuing an external sovereign bond is an important step but with certain limits

 Baghdad / Zahraa al-Jassim 
 

At the time, the financial adviser to Prime Minister Haider Abadi, it is the first time that the Republic of Iraq itself to promote and deal with the Iraqi international debt in the global debt market called DCM, which gives a strong signal to investors to deal with Iraq with high confidence, confirmed that it will also enable us to finance The budget is flexible or flexible international sources, in turn described the parliamentary economy, the step of Iraq's issuance of external sovereign authority to the "task", as it will contribute to the payment of financial benefits of the government to contractors and companies, and the role of the private sector through mutual trust, The bond should not be issued in absolute terms because it also increases the budget deficit. 
"The first time the Iraqi Republic intervenes to promote and deal with the international debt of the Iraqi people in the international debt capital market called the DCM, which gives a strong signal to investors to deal with Iraq with high confidence, as well as the possibility of financing The global budget is flexible and flexible through international financial markets, not from specific countries or multilateral financial institutions. The most important is to build bridges of trust with the global market, especially with international investors, and make them touch the potential of the Iraqi economy, The sources of the strength of our national economy promising the victor in the front of the war on terror, especially as Iraq today is reaping the results of victory in the real financial and military. 
In a statement received by Al-Mada, Saleh said that on Wednesday, August 2, 2017, Iraq issued an international sovereign bond bearing the name "Euphrates", indicating that the duration of the bond is five years and the interest rate is 75.6% paid every six months . The number of international investment companies that have offered to buy and compete against it has reached about 350 international investment companies with investment facts exceeding $ 12 trillion. They have applied for ( Buy) bond called (Euphrates) and approached $ 6 trillions oversubscribed including on th Thal Abu Dhabi Investment Fund and the Arab Monetary Fund and the Education Fund in California , which is one of the richest funds in the US West Coast and the world. 
Saleh added: The sale was carried out on Wednesday, 2 August 2017, in London by the underwriters. The bond was registered for sale and purchase in the Irish stock market, using the European Union standards as one of the most accessible and efficient financial markets. The lowest bond category is 200 thousand Thus, in 2017, the Republic of Iraq issued two successive sovereign international bonds to trade in the international capital market to date: the first is the bond (the Tigris) with a benefit of 149.2% in the issued value of $ 1 million guaranteed Of the US government. 
He continued: Today the second sovereign bond (Euphrates, guaranteed by the government of the Republic of Iraq and its credit rating B - and carries interest at 6.75%, which is lower than the Iraqi international bond traded in the secondary secondary markets since 2006) to settle the Paris Club debt, 28 And its benefit or yield thereon 6. 7% currently. 
The average annual interest rate on the Tigris and Euphrates versions is 4.4 per cent , according to a member of the parliamentary economic committee Zeytoun al-Dulaimi in an interview with Al-Mada. The issuance of the external sovereign bond is an important step, To investors, contractors, companies and traders who request the state amounts not paid to them so far, on the other hand, it contributes to the maintenance of work in the projects stalled, especially since there are projects ranging between 80 to 90% completion, so the amounts derived from the sale of sovereign debt will ensure The rights of people who seek state payments have not been paid After, and in order to have mutual trust between investors and contractors and the government on the other hand in order to complete the remaining projects 
Dulaimi stresses: That while we have included the supplementary budget approved by the Parliament recently some of the amounts to pay the benefits of the contractors and financial peasants in charge of the state, the sale of these bonds will also contribute to fill part of the deficit in the budget, the steady: We are at a time welcome this step, we stress Also that these bonds should not be issued in absolute terms because this will also increase the budget deficit and will also generate financial benefits that the state may be unable to meet. Therefore, the sale of bonds must be subject to controls and must be within certain limits, And to provide a goo Of confidence. 
Dulaimi points out:    That the Iraqi economy today should go to investment and activate the role of the private sector, especially as the whole country is heading to stimulate the private sector and this will not be without the existence of mutual trust between the investor and the contractor and the owner of the company and the state on the other hand, therefore, these bonds is a guarantee for all and in full, Is important and valuable and has balances in the Iraqi state, today Iraq when he entered the international classification, even if the degree (B), which we do not consider the entitlement to Iraq, because Iraq was previously rated (ie), that Iraq had strong financial returns and budgets strong also His balance in his reserves of Hard gold coin was great, but because of the financial crisis experienced by Iraq. 
The Central Bank of Iraq revealed, on September 22, 2013, the arrival of reserves of foreign currency and gold to about $ 80 billion, while attributed to the increase in world oil prices, expected to increase that reserve in the coming months. 
The Central Bank of Iraq, announced on (3 April 2014), the arrival of gold reserves to 90 tons to support the value of the Iraqi dinar, indicating that this contributes to the strengthening of the national economy. The central bank said it had "bought 60 tons of pure gold from around the world in order to support the value of the national currency, the dinar," adding that "the amount of reserve gold currently owned has reached 90 tons." 
On 23 March 2013, the International Monetary Fund (IMF) announced that the DFI's fiscal balances rose in 2012 to $ 18 billion and the central bank's foreign currency reserve to $ 70 billion, attributing this rise to " Unexpected oil ".

[yota691]

«Tigris and Euphrates» and revive the economy

08/8/2017 12:00 am    Abdul-Zahra Mohammed al-Hindawi  In the wake of the financial crisis that hit Iraq in 2014 and the accompanying security crisis, the fear and anxiety of the possible serious repercussions of that crisis has reached its range, and there were expectations of local and international experts that Iraq will collapse economically in the first half of 2015 and at best to the end of that General, and have been issued such fears by ministers in the government !! When they said that the government will be unable to pay the salaries of its employees because of the lack of funds to secure those salaries, which are about 38 trillion dinars annually; there is no doubt that such attitudes and statements cast a negative impact on reality With all its details, WPA Employees fearful of the possibility of their salaries stopped. Certainly, fears of this kind will be justified in a country that has no financial resources but oil, and with the continuation of the collapse in prices, it was necessary to search for solutions and treatments that contribute to the shift from the case of defense and try to get out of the crisis with minimal losses to the state of planning medium or The results of which are the beginning of a number of treatments related to improving the reality of development. Among these solutions are the reconsideration of investment projects, the creation of non-oil financial resources and other measures that have led a number of international organizations and friendly countries to express their readiness. The provision of support for Iraq through soft loans.  But despite the ease of these loans and the modest numbers, they are ultimately a burden on the economy and therefore, they need efficient management to achieve the economic and social feasibility required, especially after the great economic success achieved on the second of this month, which is the entry of Iraq to the financial markets After the issuance of the second international sovereign bond in the name of (Euphrates) and its duration of more than five years, and surprising that more than 350 companies from the international investment companies competed among themselves to buy the Iraqi bond, representing a total of a global financial number up to 12 Tre Lyon dollars, while the volume of purchase orders reached about 6 trillion dollars to support (Euphrates) Iraq secured by the Iraqi government and not by any other international body as the first in Sindh (Tigris) , which safeguarded the United States government.  And when we talk about the investment turnout by international companies to buy Iraqi bonds, this means that an important financing outlet will be Iraq contributes to finance the chronic deficit suffered by the budget, as well as   to move the wheel of economic activity,   on the other hand will be an economic achievement reassuring and encouraging men Businessmen and investors to enter Iraq aggressively and participate in the process of reconstruction of liberated areas, and thus dispel all the concerns that were concerned with economic affairs.  But the most important is that the administration of this file is of importance, because the achievement was not easy at all, it is the result of the efforts of great and painstaking by the members of the national team who were carrying a national spirit high, as well as being eminent experts experienced by the economic arena at the national and international levels, so This achievement should be maintained and directed to the right direction that serves the development of the country.

[DinarThug]

Thx Bro Yo' !  

 

 

Here's A Highlighted One From Delta ...

 

 

FRANKIE DROP THE MIC...

 

Tigris and Euphrates» and revive the economy

 

08/08/2017 0:00

Mohammed Abdul Zahra al-Hindawi

In the wake of the financial crisis that hit Iraq in 2014 and accompanied by a security crisis, the fear and anxiety of the potential serious consequences of this crisis range has reached, and there were expectations of local experts and international that Iraq would collapse economically in the first half of the year 2015 and at best to the end of that General has issued such concerns by the ministers in the government !! when they said that the government would be unable to pay the salaries of its employees for lack of funds needed to secure the salaries of about 38 trillion dinars per year; no doubt that such attitudes and statements cast a negative reality all the details, Luba Employees fearful of the possibility of their salaries stopped.

Certainly the fears of this kind would be justified in a country that does not have any financial resources only oil, and with the continued state of collapse in prices, it was necessary to search for solutions and processors contribute to the transformation of the defense and try to get out of the crisis with minimal losses to the state average planning or the near term at least, this is what happened really, was the outcome of Zlkalshrua by taking a number of treatments related to improving the reality of development among those solutions to reconsider investment projects and the creation of non - oil financial resources and other measures that prompted a number of international organizations and friendly countries to express readiness The provision of support for Iraq through soft loans.

But although pleased these loans and modesty its figures , but it eventually forms a burden on the economy and therefore, they need to manage efficient to achieve economic and social required feasibility,especially after the great economic success that has been achieved in the second of the current month of August represented by the entry of Iraq into money markets World after the issuance of the second external sovereign bond international on behalf of the (Euphrates) and duration of more than five years, and the sudden thing is that more than 350 companies from global investment companies competed with each other to buy the Iraqi bond,and represent these companies collectively financially set the world up to 12 Trilion dollars, while the volume of purchase orders reached about 6 trillion dollars to support (Euphrates) Iraq secured by the Iraqi government and not by any other international body as the first in Sindh (Tigris) , which safeguarded the United States government.

When we talk about investment blockbuster by international reputable companies to buy Iraqi bonds, it means that the outlet funding whatever will have its Iraq contributes to the financing of the chronic deficit of the budget, as well as

for moving the wheel of economic activity,

and the other side will represent the economic accomplished reassuring and Chdjaaa for men business and investors to enter strongly to Iraq and participate in the reconstruction process of the liberated areas, and thus dispel all the concerns that were Taatari involved in economic affairs.

But the most important is that the management of this file is the level of importance, because scored , was not easy at all but it is the product of a large and strenuous efforts made by the national team members who were carrying the spirit of national high, as well as being eminent experts see them economic arenas at the national and international levels, so It should be done to maintain this sound and direction of the destination that serves the development of the country.

 

 

  wowwwwwwwwwww 6 TRILLION TO BUY IRAQ BONDS..

 

http://www.alsabaah.iq/Article.....?ID=142165

 

DELTA

 

[Rmc10]