Khaberni - The Ministry of Finance, the Ministry of Planning and International Cooperation, and the Central Bank of Jordan announced today, Tuesday, the successful completion of the Eurobond issuance in the global financial markets, valued at (700) million US dollars, with a fixed interest rate of (5.75%) for a term of seven years, i.e., until November 2032.
Thus, the Ministry of Finance has managed this year to reduce the interest rate by about (1.75%) compared to the 2023 issuance, which had an interest rate of (7.5%) for a term of five years, due to improved economic and financial performance, which contributed to the reduction of the interest rate.
The Minister of Finance, Dr. Abdul Hakeem Al-Shibli, stated that the issuance targeted a subscription amount of (700) million US dollars, but the offers from investors exceeded three times the value of the issuance, which demonstrates the confidence of investors and the continuous economic growth, as the Jordanian economy's growth rate reached 2.7% in the first quarter of 2025 and 2.8% in the second quarter of 2025.
He pointed out that the proceeds of this issuance will be used to repay the Eurobonds issued ten years ago and due on January 29, 2026, noting that a large number of investment institutions participated in the subscription, including the most important and largest investment funds globally from the United States, the United Kingdom, Europe, Asia, and the Gulf Cooperation Council countries.
The Governor of the Central Bank, Dr. Adel Sharkas, emphasized that the Jordanian economy is robust and based on solid economic fundamentals, which contribute to maintaining sustainable economic growth, public financial stability, and public debt sustainability, within a strategy aimed at replacing high-cost debt with lower-cost debt, thus reducing debt service burdens on the public budget.
Dr. Sharkas added that the high demand for the issuance reflects the international community's and international investors' confidence in the financial and monetary policies and the strength of the Jordanian economy. Many investors praised the financial and monetary stability in the Kingdom despite the instability in the region, which contributed to reducing the risk factor for the Kingdom, and therefore reducing the interest on the bonds.
The Minister of Planning and International Cooperation, Zeina Toukan, said that Jordan enjoys close international relations thanks to the tireless efforts led by His Majesty King Abdullah II, and Jordan possesses a comprehensive reform vision for the coming years, especially the economic modernization vision, which has enhanced the international community's confidence in the performance and sustainability of the Jordanian economy and reflected in attracting investors to subscribe to the bonds.
This issuance is part of the financing budget listed in the public budget law for 2025, to repay the Eurobonds that are due at the beginning of next year, and hence it is part of the expected debt for this year.
