Iraq Ready to Market Bonds

By John Lee.

Reuters reports that Iraqi officials are planning to start marketing a new Eurobond following the Labor Day holiday in the U.S., which falls on 7th September.

Citigroup, Deutsche Bank and JPMorgan Chase are to be the lead managers for the deal, which is expected to be unsecured.

Iraq is hoping to raise up to US$6 billion through bond sales, the first time in nearly a decade that it has gone to the market for funding.

Iraq last issued an international bond in January 2006; that US$2.66 billion 5.80 percent deal matures in January 2028, with the note currently trading at a cash price of 75.50, to yield 10.23 percent.

Fitch recently assigned Iraqi debt a 'junk' rating.

(Source: Reuters)

(Bonds image via Shutterstock)