Exclusive - Iraq seeks credit rating before jumbo bond issue

[SnowGlobe7]

13 members 159 guests

 

this site rocks!

[k98nights]

So we all know that Iraq is seeking the credit rating and that there is to be a jumbo bond issue. My question is timing.

The bond issue comes after the credit rating, so that investors will have some idea what the bonds are worth,

And the credit rating comes after an RV? I mean, how useful would a credit rating be for a country still using programmed exchange rates and a currency only useful inside its borders? 

If this is the case, when would the credit rating be likely assessed? You have to assume that an RV would come at or before that time.

So that might help to determine when a hypothetical RV might occur.

 

And to me that means SOON and IN THE COMING DAYS!!    

[drj]

Sorry for the language when I picked up the phone... last time you called I think it was because the server was down.

 

This is awesome news - great find!!!!

 

That's funny!  Word to the wise...never call Adam if the server is down!

 

More good news!  Things are certainly lining up!  

[Reverse-Pumper]

Can anyone here explain to a toddler why this is such big news to this investment?

[SgtFuryUSCZ]

It's been fun watching people here get prepared and informed. just like you, it's a gamble for me. Hopefully the man upstairs will be good to us.

***///

 

Thank you for addressing us honestly and with patience, JC123 !  Guess we're just going to have to let go, let God ! 

Can anyone here explain to a toddler why this is such big news to this investment?

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DUDE ! Can't ya read..?  The brains in our Outfit here have been discussing it at length !

 

Read up... the light'll pop on in yer head before ya know it !

 

Albeit quite a few of us still have questions, y'know, the usual - DATE/RATE yadda, yadda, yadda... 

 

But the posts from or resident geniuses are helping all of us put it together ! Hang in there !

[Sandrider]

W O W !!!   Thanks for this GREAT NEWS.  Love that poster SnowGlobe7. 

[vomer]

 

(Reuters) - Iraq plans to obtain a sovereign credit rating and is approaching rating agencies as it prepares for a jumbo $5 billion (£3.2 billion) bond issue needed to cover a budget deficit caused by low oil prices, its finance minister said on Thursday.

Not to be negative but this sounds more like they're trying to dig out of a hole than reforming any currency.  I'd like to be shown where I'm wrong.

[Candy01]

k98nights,

 

You are IN MY PRAYERS!!  I TRULY hope things work out for you buddy!  You are not the ONLY one in these difficult circumstances!!

 

:praying:

[millionaire in training]

And to me that means SOON and IN THE COMING DAYS!!      

Does anyone have any idea as to when this would happen?  

 

Is it already in motion?     Or is this something they are planning to do?

[skeetdog]

It's defiantly goin' to RV on ''Today''...

[TQueezy]

To me this seems like Iraq crying for help, like they can't pretend to be powerful and hide behind the facade of their oil reserves pretending they are strong enough to hold up their way of life.

This is Iraq conceding defeat and trying to join the ladder of "developed" countries at the bottom rung. They have a long way to go though.

Let's just hope that path starts with a 1 to 1 exchange rate with the dinar and U.S. Dollar and that banks here honor face value of our "3-zero" notes.

[Nelg]

Just another PLUSSSS!!!!  Oil (crude) closed today at nearly $60 pb.  Another Woohooo!!

[justchecking123]

Finally asked the manager of my bank about this today, we have a pretty solid relationship. He says, "You don't seem to be stupid when it comes to money. If Iraq gets a credit rating, it would literally mean that they would almost have to start over with their financial system. Bonds?...Couldn't tell you. All I know is I've been told, and tell others it's a scam when they come in here." He was a bit amused that I was invested, but didn't rip on me...he knows better.

["Fred"]

This Is so great I am going to quit my job, oh thats right I'm laid off.

I'll be happy to quit mine,all I've gotten from working is a few dirty t shirts and some worthless Dee nars,please someone make this happen sooooon....

I'll be happy to quit mine,all I've gotten from working is a few dirty t shirts and some worthless Dee nars,please someone make this happen sooooon....

[Adam Montana]

"All I know is I've been told, and tell others"

 

 

 

Just another PLUSSSS!!!!  Oil (crude) closed today at nearly $60 pb.  Another Woohooo!!

 

One more check on the list of things going the right way!

 

[k98nights]

k98nights,

You are IN MY PRAYERS!! I TRULY hope things work out for you buddy! You are not the ONLY one in these difficult circumstances!!

:praying:

Thank you Candy!!

[marknet73]

More positive news lately than I've seen since I invested back in 2010. Big stuff here guys.

[skeetdog]

.....''News Flash''....Iraq has, is and will be redeveloping their financial everything for the next 15 yrs...It's like ''What'' financial system at this point of the game is there to change....

[SnowGlobe7]

Finally asked the manager of my bank about this today, we have a pretty solid relationship. He says, "You don't seem to be stupid when it comes to money. If Iraq gets a credit rating, it would literally mean that they would almost have to start over with their financial system. Bonds?...Couldn't tell you. All I know is I've been told, and tell others it's a scam when they come in here." He was a bit amused that I was invested, but didn't rip on me...he knows better.

 

It is always hard to bring us bank stories...thanks for sharing...hope you get to go to him and prove him incorrect in this case!!

[vietnam1969]

Great news K98.  Thanks for sharing and thank you Adam for your comments.  The light at the end of the tunnel just got a little brighter.

[SgtFuryUSCZ]

Great news K98.  Thanks for sharing and thank you Adam for your comments.  The light at the end of the tunnel just got a little brighter.

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It's a train ! Get outta the way !  

 

   Kidding !  It's the RV RollerCoaster and it's comin' around again !   

[SnowGlobe7]

Pay attention on the rollercoaster...or you will not enjoy the ride

 

Ladies your stair lift does not qualify as a rollercoaster

 

[SgtFuryUSCZ]

***///

 

Hahahahahaha...!  We LOVED that ride !        

[elgin]

Finally asked the manager of my bank about this today, we have a pretty solid relationship. He says, "You don't seem to be stupid when it comes to money. If Iraq gets a credit rating, it would literally mean that they would almost have to start over with their financial system. Bonds?...Couldn't tell you. All I know is I've been told, and tell others it's a scam when they come in here." He was a bit amused that I was invested, but didn't rip on me...he knows better.

Wow, funny how bank stories are so different. I bank at Regions and a few years ago I saw a sign that said they were buying IRAQI Dinar ! I ask the cashier if the Dinar's value had increased and she said no just that Regions was buying Dinar not selling. After 30 days I ask the same cashier did a lot of people sell their Dinar ? she said a few not many. Around 5 or 6 weeks they stopped buying and no one wanted to talk about it any more.

[DinarThug]

Here's BondLady's Admin Tlm's Comments On It ...

 

 

 

Afternoon Update 04/30/215

Exclusive - Iraq seeks credit rating before jumbo bond issue

Tlm724:  Thanks Rocky this is a good one !

Iraq plans to obtain a sovereign credit rating and is approaching rating agencies as it prepares for a jumbo $5 billion (£3.2 billion) bond issue needed to cover a budget deficit caused by low oil prices
 
Tlm724:  Jumbo bond issue, go big or go home !!!!

"We started the process," Hoshiyar Zebari

Tlm724:  Action !
~~~

 

Iraq has said it will issue $5 billion of debt in its first international bond sale for nine years.

Tlm724:  For the first time in 9 years wow ! International bonds baby and let us not forget that bonds are a debt and, depending on the terms of the bond, Iraq is obliged to pay them interest and/or to repay the principal at a later date, just sayin...

It has been discussing its bond issue plan with Citibank and Deutsche Bank

 

The process of obtaining a credit rating could be a delicate one for Iraq, requiring it to open its books to the agencies and disclose new information on its finances. Zebari did not say when he expected the process to be completed

Tlm724:  If Iraq whats to play with the big boys then they will have to open their books ! Full transparency is required.

many fund managers think it would struggle to sell $5 billion in a short space of time, even with generous pricing.

Tlm724:  In order for Iraq to entice these fund managers they are going to have to get a good credit rating and also avoid the anti-money laundering black list. These two issues are critical to Iraq's economic reform plan ! It is imperative to address these and do it quickly in order to build international confidence !

Asked if $5 billion was too ambitious, Zebari said: "We have in the budget a commitment to issue $6 billion. So this is the low - this is how we plan to cover our deficit. But there’s no way we can do it in one tranche.”

Tlm724:  Not issueing in one tranche means not all at once, there will be predetermined schedule of issuance.

In addition to the international bond issue, Iraq has introduced or is planning other fiscal measures including a local currency bond issue to banks

Tlm724:  This is telling for sure issueing bonds in dinar, the question remains what will they do to the dinar to make it attractive ? Still to be determined  Wink