Iraq Business News brings you the latest on Iraqi government bonds, with information on developments and opportunities.
By John Lee. In response to the high demand for its "Injaz/Enjaz" ["achievement"] bonds, first issued in May, the Central Bank of Iraq (CBI) will offer a second issue of these bonds on behalf of the Ministry of Finance. The total amount available is 1.5 trillion Iraqi dinars [$1.15 billion]. The bond are available for […]
By John Lee. The Central Bank of Iraq (CBI) has said it will issue a new series of bonds on behalf of the Ministry of Finance. The "Injaz/Enjaz" ["achievement"] bonds will be offered in two denominations: A 500,000 Iraqi Dinar (IQD) bond with an annual interest rate of 6.5 percent for a period of two […]
By John Lee. In a move to enhance the investment sector and align with the directives of the Ministry of Finance, Rafidain Bank has announced the issuance of the third series of reconstruction bonds for amounts of 500,000 and 1,000,000 Iraqi dinars. The bonds carry an annual interest rate of 6% and 8% for two […]
By John Lee. Iraq's Ministry of Finance announced on Friday the issuance of the third tranche of reconstruction bonds, named "Sukuk Al-Imar," totaling 2 trillion dinars [$1.5 billion]. This issuance is in accordance with Budget Law No. 13 for the fiscal years 2023-2024-2025, covering the period from December 31, 2023, to January 30, 2024. The […]
By John Lee. Moody's Investors Service has said that Iraq's credit profile of Caa1 is supported by the country's "ba2" economic strength, reflecting, "the balance of strong growth potential associated with large natural resource endowment against low competitiveness and the significant loss of productive capacity and infrastructure after many years of armed conflict". More here. […]
By John Lee. The Iraqi parliament has reportedly authorised borrowing of up to $5 billion (Dh18bn) from abroad after the fall in oil prices caused a financial crunch. According to The National, the vote came a few days rating agency Fitch forecast the economy to shrink 9 per cent this year and debt to skyrocket. […]
By John Lee. Iraq is well positioned to service its debt obligations, according to an article in Australia's Investor Daily. Responding to the question "what’s your view on bonds issued by Iraq’s government?", Mark Baker writes: "Iraq is a net external creditor, meaning its external assets are greater than its external liabilities. That means the […]
By John Lee. Simon Hinrichsen, a PhD student at the London School of Economics (LSE), has published an analysis of Iraq's sovereign debt over the years. The full 51-page report can be downloaded here. (Source: LSE)
By John Lee. Iraq's (Caa1 stable) credit challenges include very weak institutions and governance that limit policy effectiveness, constrain the government's capacity to respond to external and domestic shocks and weigh on economic competitiveness, Moody's Investors Service said in a report this week. It says last year's improvement in the fiscal and external balances was […]
By John Lee. Moody's Investors Service has affirmed the Government of Iraq's long-term issuer and senior unsecured ratings at Caa1 and maintained the stable outlook. The decision to affirm Iraq's Caa1 ratings reflects credit challenges posed by very weak institutions and governance that in Moody's view, will continue to limit policy effectiveness, constrain the government's […]
By John Lee. Following Iraq's successful return to the bond markets earlier this year, it is now reportedly planning a $2 billion sovereign bond issue in 2018. The Governor of the Central Bank of Iraq (CBI), Dr. Ali Mohsen Ismail Al-Allaq [Alak] (pictured), told Reuters that the plan is currently awaiting parliamentary approval. He added […]
By John Lee. Iraq opened the books yesterday on its first independent bond sale in a decade. "Investor demand was huge," writese Marcus Ashworth at Bloomberg. "The deal was seven times oversubscribed." The $1-billion, dollar-denominated bond, maturing in March 2023, was expected yield 7 percent, but demand enabled that to be cut to 6.75 percent. […]
