Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Iraq plans new bond as 3.3 million oil barrels a day gush  Join our daily free Newsletter

MENAFN - Khaleej Times - 26/10/2013
No. of Ratings : 0
Add to Mixx!


(MENAFN - Khaleej Times) "We formed a committee to decide on the details for the bond issue, which will most probably be of medium- to long-term maturity," Deputy Finance Minister Fadhel Nabi said in an October 22 phone interview from Baghdad. "The joint committee from the Finance Ministry and the central bank will also decide on the timing, which can be within a year," he said, declining to give more details.

Iraq, with the world's fifth-largest oil reserves, boosted income from crude sales by 23 per cent from June to August and earned 6.5 billion in September, data compiled by Bloomberg show. The country is pumping 3.3 million barrels a day amid attacks that killed more people in the first nine months of this year than in all of 2012. Government debt as share of gross domestic product should drop to 25 per cent this year from about 800 per cent a decade ago, Standard Chartered said on October 20.

The extra yield investors demand to hold Iraq's dollar bonds rather than Treasuries has tumbled 143 basis points, or 1.43 percentage points, since this year's June 25 peak to 510 basis points on Thursday, according to JPMorgan Chase & Co's EMBI Global indexes. The spread between Treasuries and Middle Eastern bonds narrowed by 37 basis points in the period.

"Iraq's yield is very attractive, underpinned by strong government finances and a fiscal position," said Ahmad Alanani, Dubai-based director for the Middle East at Exotix Ltd.

"I'd take Iraq risk today over some of the more vulnerable places in the Middle East."

The yield on Iraq's 5.8 p cent dollar bond maturing in January 2028 dropped to 7.275 per cent today from a high for this year of 8.803 per cent on June 24, according to data compiled by Bloomberg. The bond began trading at about nine per cent in 2006.


Iraq issued 2.7 billion in securities to help restructure debt accumulated during the era of former president Saddam Hussein. The bond is the country's only dollar-denominated debt and equates to about 1.2 per cent of 2012 gross domestic product, Geoffrey Batt, managing director of the 82 million Euphrates Iraq Fund, said in an October 22 e-mail.

"It's tiny compared to Iraq's financial resources, and there's little doubt the country can meet its obligations," he said.

As government borrowing continues falling as a share of GDP, Iraq may find it easier to return to capital markets, particularly for long-term infrastructure projects, Standard Chartered said in its report this week.

Nabi, the deputy finance minister, confirmed in his interview that Iraq's next bond would help pay to rebuild infrastructure damaged by decades of war and sanctions.

Even so, the government's plan for a second bond is less than certain. Iraq said more than two years ago, in July 2011, that it would come to market in a year.

Iraq's efforts to rebuild its economy 10 years after the US-led invasion that ousted Hussein are hobbled by political in-fighting and sectarian strife. A dispute between the central government and the semi-autonomous Kurdish region led the Kurds to suspend oil exports through a national pipeline in December.

 


Khaleej Times




  MENA News Headlines
 Mar 23 2017 - Kuwait- EU welcomes resumption of Syria talksKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BRUSSELS, March 23 (KUNA) -- The European Union welcomed Thursday the resumption of talks between the Syrian parties in Geneva this week as an "essential step on ...

 Mar 23 2017 - Kuwait- French FM warns against tide of global dangersKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, March 23 (KUNA) -- French Foreign Minister Jean-Marc Ayrault on Thursday warned against the rising tide of global dangers, illustrated by the terrorist ...

 Mar 23 2017 - Kuwait- London attack underscores dynamic environment in Europe - top military officialKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) WASHINGTON, March 23 (KUNA) -- A senior US military official stressed here Thursday that the attack in London underscores the "dynamic environment" in Europe. ...

 Mar 23 2017 - Kuwait- KFAED, Ivory Coast sign KD 5-mln loan agreementKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, March 23 (KUNA) -- The Kuwait Fund for Arab Economic Development (KFAED) and Ivory Coast have signed a loan agreement worth KD five million (USD 17 ...

 Mar 23 2017 - Kuwait- Economic, social council agrees draft agenda of Arab summitKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) DEAD SEA, Jordan, March 23 (KUNA) -- The Arab Economic and Social Council concluded its senior-level meeting here on Thursday after working out draft resolutions ...

 Mar 23 2017 - Kuwait- UNSC extends Panel of Experts assisting DPRK's sanctions' cmteKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, March 23 (KUNA) -- UN Security Council renewed the mandate of the Panel of Experts assisting the sanctions' committee amid the threat the Democratic ...

 Mar 23 2017 - Kuwait- Senate confirms David Friedman as US ambassador to IsraelKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) WASHINGTON, March 23 (KUNA) -- The Senate on Thursday confirmed attorney David Friedman as the Trump administration's new US ambassador to Israel with a 52-46 ...

 Mar 23 2017 - Kuwait- UNSC calls for immediate ceasefire in S. SudanKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, March 23 (KUNA) -- UN Security Council called Thursday for immediate adherence to the permanent ceasefire by all parties to the conflict in South Sudan. ...

 Mar 23 2017 - Kuwait- UNSC condemns DPRK's ballistic missile testsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, March 23 (KUNA) -- UN Security Council strongly condemned the ballistic missile test-launch and missile engine test, recently conducted by the ...

 Mar 23 2017 - Kuwait- Briefing of KUNA main news for Thursday until 00:00 GMTKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BAGHDAD - "Kuwait beside You" campaign distributes assistance to displaced Iraqi widows. DEAD SEA - The Arab Economic and Social Council approves ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help