IRAQ SAID TO BE PLANNING A SECOND $1 BILLION BOND ISSUE

[Wiljor]

Iraq, January 23, 2017 

Iraq announced the sale of $1 billion in bonds guaranteed by the United States, paying an interest of 2.1 percent, far below the 9 percent yield on the country’s non-guaranteed debt.

The U.S.-guaranteed five-year bonds were issued on Wednesday, the finance ministry said in a statement on Sunday.

The Iraqi government, which relies almost exclusively on oil income, has struggled to pay its bills since crude prices dropped in 2014, the same year that Islamic State militants seized a third of the country’s territory. 

The Iraqi government in November said it plans to issue $2 billion worth of bonds on international markets to help narrow its budget deficit in 2017.

The bonds will be sold in two equal tranches of one billion dollars each, one of them with a U.S. guarantee that would reduce its cost of borrowing, it said.

Iraq has a speculative rating of B/B- from both S&P and Fitch. It has a $2.7 billion in international bonds due in 2028 with a coupon of 5.8 percent, currently yielding about 9 percent.

 

ekurd

http://iraqdailyjournal.com/story-z14665050

[siberian_shaddow]

Much appreciated Wiljor, this is very positive.

[yota691]

01/23/2017 (21:01 pm)   -   the number of readings: 486   -   thenumber (3834)

 

 

Finance Committee: $ 123 billion of Iraq's debt of internal and external

 Baghdad / peace Zidane 
 

Parliamentary Finance Committee confirmed, yesterday, that the size of Iraq 's internal and external loans amounted to $ 123 billion, borrowing criticizing the Government 's policy, and invited them to follow a policy of austerity. 

So criticized experts in financial matters the government continues to borrow the internal and external policy, warning of the dangers of the continuation of this policy on the future of the country. 
The government decided according to the current year budget borrow $ 19.6 trillion dinars (16.5 billion dollars) from local and international institutions to fill of 21.6 trillion dinars deficit ($ 18.2 billion). 
As the budget allowed the Treasury to issue money orders worth $ 12 billion to pay off the loans in foreign oil companies operating in the country. 
Iraq has signed the credit cooperation with the International Monetary Fund agreement for a loan of $ 18 billion, also signed an agreement with the United States to secure a loan of $ billion. 
Iraq and allocated according to the current year budget $ 5 trillion dinars (4.2 billion dollars) to pay the benefits of internal and external loans. 
The Finance Ministry said in separate statements, seen them (range), " The foreign ministry issued government bonds guaranteed by the US government one billion dollars , " indicating that they "bond for five years and an interest rate of 2.1% per annum." 
She drew the Ministry of Finance that " the outcome of this bond will be used to finance the budget deficit , based on the General Budget Act , which authorized the Minister of Finance issuance of those bonds." 
On the other hand, the Ministry of Finance said that " the Undersecretary of the Ministry of Finance Fadel Prophet discussed during his meeting with a delegation of the World Bank technical in the ministry 's headquarters, special topics to support the reconstruction of areas affected by terrorism fund." He called the Prophet to "increase the loan financing to fund the reconstruction of areas affected by terrorism." 
Commenting on the internal and external borrowing policy, confirmed the MP pros Hamadoun, a member of the parliamentary finance committee, that " the government 's misguided policy in the increase in loans, will be charged to future generations many mobilized, and was supposed to resort to austerity and self - realized by OPEC agreement from high in oil prices. " 
She said Hamadoun, told the (range), that "internal and external loans amounted to $ 123 billion, which is a very large number , especially since some of the loans will go to support the budget and not activating the productive sectors." 
He considered a member of the Finance Committee that " the government has decided to eliminate the industry through the final decision , which allows employees to retire or move other companies to the Ministry." 
Hamadoun added that "ministers who hosted the Finance Committee during the discussion of the current year budget refused to reduce their expenses and thus forced the government to bridge the fiscal deficit through borrowing." 
MP, however , saying that "borrowing , which goes to the reconstruction of the affected areas as well as the development of factories, agriculture has no objection to it because it will switch to support the budget in the coming years." 
However , economist Abdul Rahman al - Mashhadani , played down fears the expansion of government borrowing policy, he says that "Iraq is hard to reach what we have reached Egypt and Greece because of the debt crisis, because we put so much better and the debt is still not equal to the GDP." 
Al - Mashhadani said that "In the long term debt continuation may be forced Iraq to sell oil fields to creditors for a specified period of time to repay the loans , " adding that " the increase of external debt and internal index is very serious and if oil remained the same will lead to increased borrowing." 
He noted economist that "Iraq will exceed the plight of the loans if the price of a barrel of oil to $ 80 , " noting that "Iraq has allocated $ 5 trillion dinars to pay off the interest on the loans and the result in the next year , this amount will increase due to the repayment of loans maturity."

[Wiljor]

IRAQ ASKS FOREIGN BANKS TO PURCHASE $1 BILLION IN BONDS FOR BUDGET DEFICITS

Iraq, January 24, 2017 In an attempt to stem a projected 21.7 trillion dinar ($19 billion) deficit in 2017, the Iraqi government issued US-backed foreign bonds worth $1 billion last week, Baghdad has announced. “The Ministry of Finance has made great efforts during the month of January … to issue the bonds through the crisis meet all the requirements for the completion of this process, which was successful,” a press release on the state’s website reads. The statement explains the duration of the bond is five years with an annual interest rate of 2.1-percent with the funds being used “to finance the budget deficit” based on the General Budget Act, noting that foreign banks have praised the (low) interest rate. “These funds will help the Government of Iraq provide food, water, shelter, and medical care to the most vulnerable Iraqis as well as allow Iraqis to benefit from government services, such as education, that prepare them for a bright and fulfilling future,” said Stephanie Williams, the US Embassy in Baghdad’s Chargé d'Affaires, after her country agreed to back the bonds earlier this month. In early December, the Iraqi parliament approved a 100.67 trillion Iraqi dinars (about $85 billion) budget for 2017. It forecasted a deficit of 21.7 trillion dinars ($19 billion) and spending of 100.7 trillion dinars. “The loan guarantee agreement recognizes that Iraq continues to make progress toward meeting its economic reform goals,” Iraqi Deputy Minister of Finance Fadhil Nabi said after the US agreed to back the bonds. rudaw http://iraqdailyjournal.com/story-z14672309

[Big_J]

GM YOTA Wiljor AND DV.

[Texstorm]

Thanks Yota and Wiljor ! That should be enough $ to cover our portion of the RV ! Hot damn think about it,  the U.S. just created $ out of thin air ! Hell yes I believe in an RV !

[happygilmores]

http://english.alarabiya.net/en/business/economy/2016/10/01/Iraq-s-economic-recovery-plans-tied-up-by-US-budget-tussle.html

[10 YEARS LATER]

Perhaps things will move more swiftly with the Trumpnado at the wheel.

[ChuckFinley]

1 minute ago, 10 YEARS LATER said:

Perhaps things will move more swiftly with the Trumpnado at the wheel.

Man I hope so. I can not do another decade.   

[10 YEARS LATER]

12 minutes ago, ChuckFinley said:

Man I hope so. I can not do another decade.   

Another decade would be enough to make us both grow OLD -  

[Bama Girl]

3 minutes ago, 10 YEARS LATER said:

Another decade would be enough to make us both grow OLD -  

Uh, some of us are already there 😄, we can't afford another decade unless we can be assured of the latest and greatest power chair. LOL. The original posted article in this thread is old news from October. There is a new game in town now. 😎😎

[Lorre]

Anyone here remember SWFG? (Southwest Florida Guy) Gosh I miss him sometimes. Wish he could have been here for what we have witnessed these past few months.  I know he's in a better place though. Probably looking down at us saying,"Those poor people,"  Lol

[sandfly]

Thanks 

[10 YEARS LATER]

23 hours ago, Bama Girl said:

Uh, some of us are already there 😄, we can't afford another decade unless we can be assured of the latest and greatest power chair. LOL. The original posted article in this thread is old news from October. There is a new game in town now. 😎😎

I was 49 when I bought my first IQD in Kuwait back in '04. Back then, even most business/finance/economic news sources figured 3 to 5 years.

Little did they know what would be in store for Iraq with Maliki & his cohorts driving the Bus.

NOW, I'll be 62 this March - could have traveled to Pluto and been on my way back passing Saturn at this point.

[Texstorm]

8 minutes ago, 10 YEARS LATER said:

I was 49 when I bought my first IQD in Kuwait back in '04. Back then, even most business/finance/economic news sources figured 3 to 5 years.

Little did they know what would be in store for Iraq with Maliki & his cohorts driving the Bus.

NOW, I'll be 62 this March - could have traveled to Pluto and been on my way back passing Saturn at this point.

Hey 10 not far behind you but you have to admit that if we jackpot both you and I are far wiser men than we once we're. It would be nice to financially be able to take care of my Daddy who is in his 90's and mother who is in her 80's and the rest of my family. As for me the thought of no financial burdens, early retirement, and a great steak and lobster, along with crawfish boils on a sunny weekend, would keep a smile on my face. May God bless us all !

[ChuckFinley]

23 hours ago, Lorre said:

Anyone here remember SWFG? (Southwest Florida Guy) Gosh I miss him sometimes. Wish he could have been here for what we have witnessed these past few months.  I know he's in a better place though. Probably looking down at us saying,"Those poor people,"  Lol

I do remember him. I posted under "I miss Bond Lady" and mentioned him.  I really miss those that have gone before us.  It just shows how fragile life is.  

[Lorre]

11 minutes ago, ChuckFinley said:

I do remember him. I posted under "I miss Bond Lady" and mentioned him.  I really miss those that have gone before us.  It just shows how fragile life is.  

It is so fragile. Funny you brought up her name... Someone posted an article with someone babbling the same blah blah blah they always do, and I replied with (crickets chirping in the background) drops mic... Walks away...ha! I was thinking of her. What happened to 98knights and a bunch of the rest? Haven't seen a whole lot of the oldies.

Edited January 28, 2017 by Lorre

[four wheel drift]

Has anyone heard from Tennessee Cherokee lately?

FWD

GO RV

[Bama Girl]

3 hours ago, 10 YEARS LATER said:

Little did they know what would be in store for Iraq with Maliki & his cohorts driving the Bus.

I firmly believe that we all would have our money now if Maliki had been a leader like Abadi. Maliki did nothing to help and everything to hinder. Will be so glad when Maliki is 6 feet under or whatever depth they bury over there.😒

[10 YEARS LATER]

8 minutes ago, Bama Girl said:

I firmly believe that we all would have our money now if Maliki had been a leader like Abadi. Maliki did nothing to help and everything to hinder. Will be so glad when Maliki is 6 feet under or whatever depth they bury over there.😒

Couldn't agree more BG . . . all of us would have been somewhere else many moons ago had the plan gone as it was intended too.  

[Lorre]

1 hour ago, Bama Girl said:

I firmly believe that we all would have our money now if Maliki had been a leader like Abadi. Maliki did nothing to help and everything to hinder. Will be so glad when Maliki is 6 feet under or whatever depth they bury over there.😒

You got that right! What a joke he was, is, and hopefully, not longer will be. I don't think they have to bury them deep at all, mummification in that hot sand is pretty quick. However, he stunk when he was alive, so they better push him pretty far down I would think.

[Wiljor]

 

Trade Bank of Iraq (TBI) is working with Citi, Deutsche Bank and JP Morgan on a second $1 billion bond issue for Iraq.

Iraq, February 14, 2017 

In January Iraq successfully closed a $1 billion issuance guaranteed by the USA (see story here)

Sources told Banker Middle East that a second tranche of a further $1 billion sovereign issuance by Iraq is likely to come to market before the end of the first quarter of 2017. The five-year bond issued in January had a coupon of 2.149 per cent.

The Iraqi government is seeking to lower its international borrowing costs after the country was badly hit by the slump in oil prices. Iraq relies on oil exports for around 95 per cent of government revenues.

 

cpifinancial

http://iraqdailyjournal.com/story-z14792346

[SocalDinar]

Trade Bank of Iraq plans second $1B bond issue

Published February 14th, 2017 - 08:00 GMT via SyndiGate.info

 

 

The Iraqi government is seeking to lower its international borrowing costs after the country was badly hit by the slump in oil prices. (Shutterstock)

 

Trade Bank of Iraq (TBI) is working with Citi, Deutsche Bank and JP Morgan on a second $1 billion bond issue for Iraq.

In January, Iraq successfully closed a $1 billion issuance guaranteed by the USA.  According to a statement on usaid.gov, the loan guarantee underscores the strong and enduring commitment of the United States to support the government of Iraq in this critical moment in the fight against Islamic State. As part of a comprehensive international assistance package - anchored by an International Monetary Fund-supported reform programme - the guarantee provides Iraq access to low-cost financing essential to delivering critical services to all the people of Iraq, while laying the foundation for long-term stability and growth through economic and institutional reforms. The issuance of a $1 billion, five-year Iraqi sovereign bond on international markets is backed by a 100 per cent guarantee by the US government of the repayment of principal and interest, and was priced at a coupon rate of 2.149 per cent.

Sources told Banker Middle East that a second tranche of a further $1 billion sovereign issuance by Iraq is likely to come to market before the end of the first quarter of 2017. The five-year bond issued in January had a coupon of 2.149 per cent.

 

The Iraqi government is seeking to lower its international borrowing costs after the country was badly hit by the slump in oil prices. Iraq relies on oil exports for around 95 per cent of government revenues.

By Georgina Enzer

Editor’s note: This article has been edited from the source material to include details of the January $1B sovereign bond issue.

http://www.albawaba.com/business/trade-bank-iraq-plans-second-1b-bond-issue-937520