Iraq floats US$1 billion standalone bonds to worldwide investors

Iraq floats US$1 billion standalone bonds to worldwide investors

03/08/17

Melanie Ullrich, Business and Policy Programme Manager

Iraq is back in the debt markets with its first unsupported bond in more than a decade. The country is offering US$1 billion of bonds due in 2023 sold at 6.75 per cent, Bloomberg reports. In January this year, Iraq announced the sale of US$1 billion in bonds guaranteed by the United States.

The recent victory over IS in Mosul, Iraq’s second biggest city, the slight recovery of oil prices as well as the approved IMF loan of US$5.34 billion helped to bring Iraq back in the debt markets, a milestone for a country that urgently needs investment to rebuild itself after years of conflicts and wars. According to the United Nations, Iraq will need US$700 million for immediate stabilization in Mosul alone, reports Reuters.

Iraq has the world’s fifth-largest oil reserves, currently accounting for about 90 per cent of its revenue.