Washington DC (BBN)- The Hashemite Kingdom of Jordan on Thursday closed on its offering of a $1 billion sovereign bond issuance guaranteed by the United States Government.
This second loan guarantee reinforces the firm U.S. commitment to the people of Jordan by strengthening the Government of Jordan’s ability to maintain access to international financing, while enabling it to achieve its economic development and reform goals, a US official statement said.
The United States’ guarantee will allow Jordan to access affordable financing from international capital markets, ensuring that Jordan can continue to provide critical services to its citizens as it enacts transformative economic reforms and hosts more than 600,000 refugees who have fled the violence inside Syria.
“The loan guarantee agreement is designed to support specific economic reforms the Government of Jordan is pursuing to promote the economic stability and growth needed to provide opportunity and prosperity to the Jordanian people,” it noted.
Thursday’s issuance of a $1billion, five-year Jordanian sovereign bond was supported by a 100 percent guarantee of the repayment of principal and interest by the United States Government. The $1.0 billion issuance was priced at a coupon rate of 1.945 percent.
BBN/SSR/AD-27June14-9:05 pm (BST)