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Jordan has priced its $700 million seven-year Reg S benchmark Eurobond at a coupon rate of 5.75%, payable semi-annually in arrear. The price was tightened from the initial price thoughts in the 6.375% area.
Orderbooks were in excess of $2.1 billion (excluding JLM interest) at launch, with the yield set at 5.95%.
The kingdom is acting through the Ministry of Finance, rated Ba3 (stable) by Moody’s, BB- (stable) by S&P and BB- (stable) by Fitch, with the bond rating expected to be in line with the issuer.
Proceeds will be used to finance the purchase of any or all the outstanding $1 billion 6.125% Notes due 2026 issued by Jordan. The tender offer will expire on November 10. Any remaining proceeds will be used for permitted purposes under the Jordanian Public Debt Management Law.
The senior unsecured notes will be listed on the London Stock Exchange’s main market.
Citi and HSBC have been appointed as joint lead managers and joint bookrunner.
This is Jordan’s first bond outing since April 2023, when the Hashemite kingdom issued $1.25 billion of Eurobonds at 7.5% that were oversubscribed six times.
(Writing by Bindu Rai, editing by Seban Scaria)
