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

[DinarThug]

CNN. Broadcasting From Citigroup, Deutsche Bank and JP Morgan - This Clown Gets Around !

 

 

 

Iraq plans to sell us dollar bond deal in coming weeks - sources

July 18, 2017, 12:01:00 PM EDT By Reuters

 

 

 

Shutterstock photo

LONDON, July 18 (IFR) - The Republic of Iraq is expected to issue an international bond over the coming weeks, sources
familiar with the matter said on Tuesday.  

The new bond, expected to go up to US$1bn, will not be guaranteed by the United States Agency for International
Development (USAID), which provided full faith and credit guarantee to Iraq's latest bond issuance last January.
Citigroup, Deutsche Bank and JP Morgan will lead the transaction, which could be announced as early as the end of the
month.   

 Government representatives are expected to meet fixed income investors in London and the US ahead of the potential debt sale,
said one of the sources.     

The three banks declined to comment. 

Iraq's prime minister said last November that the finance ministry planned to sell two bonds of US$1bn each, one of which
would have been guaranteed by the US government. [nL8N1DU5P5]     

[b]Earlier this month, the prime minister's website said the council of ministers decided to permit the issuance of foreign bonds and loans specific to the general Federal budget law for
financial year 2017.
    The fundraising is needed to plug the country's budget deficit, caused by lower international oil prices.
    Iraq's latest bond issuance, which was unrated, had a five-year maturity.
    Iraq also has US$2.7bn in outstanding bonds issued in 2006 and maturing in 2028. Those notes, with a 5.8% coupon, were
yielding about 8% on Tuesday.

http://www.nasdaq.com/article/iraq-plans-to-sell-us-dollar-bond-deal-in-coming-weeks--sources-20170718-00968

[SnowGlobe7]

They have done a bond deal before right??

[Rockymtnhi]

Maybe the EU will step up and guarantee this one.  Wonder if they can sell it without guarantees?  

[Floridian]

The new bond, expected to go up to US$1bn, will not be guaranteed by the United States Agency for International
Development (USAID), which provided full faith and credit guarantee to Iraq's latest bond issuance last January

 

Maybe they won't need anyone to guarantee their bonds.

Edited July 18, 2017 by Floridian

[skeetdog]

Thanks DT...I'm missing something somewhere...How does Iraq sell US bonds......

[Floridian]

20 minutes ago, skeetdog said:

Thanks DT...I'm missing something somewhere...How does Iraq sell US bonds......

 

They are not selling US Bonds, Skeetdog, they are selling their own bonds which will no longer be "guaranteed".

 

I'm just thinking, if it's $1 Billion US, wouldn't it be over 1 Trillion dinar, at today's rates?  They've gotta be changing the rates.  So many hints, so many articles, so many websites down, or hacked or testing.   Too much happening to be nothing.

[Gypsygirl11]

In the coming weeks...we shall see.

[10 YEARS LATER]

Yep, there's quite a few more weeks left in the year for these monkeys 🐒 to pick from.

[Floridian]

7 minutes ago, 10 YEARS LATER said:

Yep, there's quite a few more weeks left in the year for these monkeys 🐒 to pick from.

 

"

Citigroup, Deutsche Bank and JP Morgan will lead the transaction, which could be announced as early as the end of the
month.   

[RJ45]

Something is definitely brewing over there. With the banks implementing the new security measures, the issue of Mastercards to the people, deals being wrangled with investors, and now this, I'm thinking "soon" may no longer mean "a decade from now"... 

[Hotcurl]

Hummm, so Wall Street (Citibank, D-bank and JP Morgan) are handling the issuance $1B in Iraqi bonds in the near future.

No terms (rate or duration) yet ?

A bit of pre-sale hype in this press release ?

IMHO - These firms wouldn't be messing around with this paper (guarantee or not) unless there is $$$$ to be made.

This appears to be another sign of stability (financial and social) in Iraq.

Another sign of international financial participation.

Semper Fi

GO RV

[nannab]

  Master Clown. If these major US banks are in on this there is big money to be made.

Sigh,only time will tell. A big thank you to all of our other contributors you are all amazing!  

From one who does not have a clue regarding high finance I balance my check book period.  

 

[SnowGlobe7]

wont it be wonderful to balance our checkbooks AFTER the RV????

[Rmc10]

I think it's Laid back who says "follow the money!!!" I don't want to take his thunder but this reminded me of him.

Edited July 18, 2017 by Rmc10

[Carrello]

3 hours ago, SnowGlobe7 said:

They have done a bond deal before right??

 

Hi SnowGlobe. There have been many bond sales over the years. The best part of this bond sale IMO will be to see if the high level investors (as stated that is who is being contacted by the GOI)  purchase bonds and the volume sold.  That will give us a barometer on the confidence level of doing business in Iraq. A few years back nobody bought bonds on an offer.

 

It looks to me that the bond proceeds MAY be used for the budget supplement that the IMF recently demanded.  This quote from a recent article:  

 

“…He said, " The budget deficit of the Federal fiscal year 2017 were 21 trillion dinars , but now and in the supplementary budget would be after raising the price of a barrel of oil to $ 44.4 Maisawi 25 trillion dinars as representing approximately 18% , " adding that " the supplementary budget came at the request of the Fund international Monetary and , if not completed and voted on before the end of this month, the IMF will stop supporting Iraq .

 

Below is the quote stating the reason for the bond sale:

 

Earlier this month, the prime minister's website said the council of ministers decided to permit the issuance of foreign bonds and loans specific to the general Federal budget law for financial year 2017. The fundraising is needed to plug the country's budget deficit, caused by lower international oil prices. Iraq's latest bond issuance, which was unrated, had a five-year maturity.

 

Edited July 18, 2017 by Carrello

[ChuckFinley]

1 hour ago, Hotcurl said:

Hummm, so Wall Street (Citibank, D-bank and JP Morgan) are handling the issuance $1B in Iraqi bonds in the near future.

No terms (rate or duration) yet ?

A bit of pre-sale hype in this press release ?

IMHO - These firms wouldn't be messing around with this paper (guarantee or not) unless there is $$$$ to be made.

This appears to be another sign of stability (financial and social) in Iraq.

Another sign of international financial participation.

Semper Fi

GO RV

Your right on there, they are not going to mess around. These guys are all about the money.  

[pokerplayer]

4 minutes ago, ChuckFinley said:

Your right on there, they are not going to mess around. These guys are all about the money.  

 

 

There all about money ? Wow, so am I     but I suspect you are to Chuck :O)

 

pp

Edited July 19, 2017 by pokerplayer

[ChuckFinley]

1 minute ago, pokerplayer said:

 

 

There all about money ? Wow, so am I  

pp

Same here. Looking forward to getting my debt paid off.  

[Hotcurl]

4 minutes ago, ChuckFinley said:

Same here. Looking forward to getting my debt paid off.  

Yep, me too Chuck. Not too much debt here, just the mortgage.

IMHO - I think we are close = too much financial press for the good, too much misinformation to confuse,+ too much other BS too be distracting.

Semper Fi

GO RV

[DinarThug]

        Laid Back

• 

 

1 hour ago, Rmc10 said:

I think it's Laid back who says "follow the money!!!" I don't want to take his thunder but this reminded me of him.

 

That's Not His 'Thunder' - Hammock Boy Snores !  

 

     

 

[SnowGlobe7]

1 hour ago, Carrello said:

 

Hi SnowGlobe. There have been many bond sales over the years. The best part of this bond sale IMO will be to see if the high level investors (as stated that is who is being contacted by the GOI)  purchase bonds and the volume sold.  That will give us a barometer on the confidence level of doing business in Iraq. A few years back nobody bought bonds on an offer.

 

It looks to me that the bond proceeds MAY be used for the budget supplement that the IMF recently demanded.  This quote from a recent article:  

 

“…He said, " The budget deficit of the Federal fiscal year 2017 were 21 trillion dinars , but now and in the supplementary budget would be after raising the price of a barrel of oil to $ 44.4 Maisawi 25 trillion dinars as representing approximately 18% , " adding that " the supplementary budget came at the request of the Fund international Monetary and , if not completed and voted on before the end of this month, the IMF will stop supporting Iraq .

 

Below is the quote stating the reason for the bond sale:

 

Earlier this month, the prime minister's website said the council of ministers decided to permit the issuance of foreign bonds and loans specific to the general Federal budget law for financial year 2017. The fundraising is needed to plug the country's budget deficit, caused by lower international oil prices. Iraq's latest bond issuance, which was unrated, had a five-year maturity.

 

 

Hey there my dear friend! I hope all is well with you and yours

 

What you have said here is so easy for me (blonde) to understand. I get it now...thanks!!!

 

Iraq needs an influx of cash due to low oil prices....so they are doing a "go fund me" 

 

THAT I UNDERSTAND!!!!

 

huggsssss!!!!!!

 

 

 

 

[mr.unlikely]

This is very interesting. If the banks underwrite the bonds prior they issuance, like they do for an IPO, these three banks will buy the entire billion dollars of bonds at a very good price. Then wait until the bid ask price climbs to the price they want , then they let them on the secondary market the banks make a fat killing and the bonds get sold at market price. If the demand is there the price will rise. I think this will help the sovereign credit rating, which Will help the dinar value.

[SnowGlobe7]

so so what if...

 

can the banks buy the bonds at face value and pay 1 billion dollars...then the RV happens..say at 2 to 1.....will the banks be able to turn the one billion dollar bond(s) into 2 billion dollars?????

 

anyone see where I am going?

 

 

[pokerplayer]

1 minute ago, SnowGlobe7 said:

so so what if...

 

can the banks buy the bonds at face value and pay 1 billion dollars...then the RV happens..say at 2 to 1.....will the banks be able to turn the one billion dollar bond(s) into 2 billion dollars?????

 

anyone see where I am going?

 

 

 

 

Um ????????????    No ??

 

pp

[SnowGlobe7]

ok so the banks buy the bonds for 1 billion...then Iraq RVs ...the bonds are now worth 2 billion. (with a 2 to 1 RV)

 

Banks are always looking to make money ALWAYS. why else would they buy bonds for 1 billion.....unless they were gonna get theirs on the back side. They sure are not doing it to Help Iraq out of the goodness of their heart....they have no heart...all about making money