Iraq on the markets after 10 years: 2 billion coming bond

Iraq is carrying out the project to issue government bonds worth 2 billion dollars in the next three months, focusing on international aid that will lower the costs of borrowing, said Ali al-Alak, governor of the Iraqi Central Bank, in an interview yesterday in Baghdad reported by Reuters.
Iraq – said the governor – hopes that the yield decreases to 5% from 11% initially requested by investors. There is in fact a precedent that had scuppered a similar attempt: October 2015 Baghdad had canceled a dollar bond issue Americans for not paying a yield of 11 percent. This time the operation – which should be handled by some banks including Standard Chartered, Deutsche Bank and Citi – would result in a plan devised in December 2015, cost cutting should be possible thanks to successes against the Islamic State and the 'aid to central Bank and international Monetary Fund. A 5% return which would have even less than that paid by Greece for its bonds (ranging 9-12%).

The first 7 billion could arrive between June and December, the Iraqi governor says that the United States and Central Bank might be guarantors. Comforting hopes to Alak at the end of March, the IMF confirmed that it could be up June 1 unlocking 15 billion of international aid for the next three years. "Any progress in this direction with the IMF will be positive," said Alak. He added "the various guarantees offered by the United States and the Central Bank will help reduce the interest rate" and underlined "5-6 % is reasonable, if we had this kind of guarantees we might even reach a lower rate ' .