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Strong Demand by Investors for Jordan’s ‘Eurobonds’

Jordan's Finance Minister Omar Malhas delivering his speech on state budget bill for 2017. Petra
Jordan's Finance Minister Omar Malhas delivering his speech on state budget bill for 2017. Petra
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Strong Demand by Investors for Jordan’s ‘Eurobonds’

Jordan's Finance Minister Omar Malhas delivering his speech on state budget bill for 2017. Petra
Jordan's Finance Minister Omar Malhas delivering his speech on state budget bill for 2017. Petra

Jordan has successfully issued $1 billion worth of Eurobonds on international markets at an interest rate of 7.375 percent and under a maturity period of 30 years, according to a Ministry of Finance statement.

Underwriting applications for the bonds surpassed $4.3 billion; more than 400 per cent of the issuance value, the ministry said, adding that more than 240 investors, including major investment funds from the US, the UK and Europe participated in the underwriting.

Minister of Finance Omar Malhas said Tuesday that the issuance comes within "the set limits" in the General Budget Law, stressing that it will not push public debt above that targeted level and does not deviate from the government's financial reform plans.

Malhas noted that Jordan has indulged in a financial reform program in cooperation with the International Monetary Fund to reduce the public debt ratio to GDP from 95 percent to 77 percent by 2022.

For his part, Secretary-General of the Ministry of Finance Ezzedine Kanakariya said the yield on these bonds would be used to finance the treasury's needs, including paying off local bonds that will be matured by the end of the year.

He added that the issuance would secure the local private sector access to funding to implement its financial plans.

Notably, a team from the Ministry of Finance and the Central Bank made a tour last week to market the Eurobonds, during which the members met more than 60 international companies from the largest investment funds and presented the economic, financial and procedural developments and plans for implementing Jordan's financial reform program.

Khalid Darwish from JP Morgan and Ziad Qutami from Citigroup managed the issuance process in global markets.

Jordan’s Ministry of Finance announced in April that it had successfully issued $500-million worth of Eurobonds on international markets.

The bond was sold with a yield rate of 5.875 percent, the ministry said.

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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a statement issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the statement, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the statement, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The statement disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.