US to guarantee Jordanian sovereign 5-year bond

May 7, 2014 10:36 am

Jordan has signed the second sovereign loan guarantee agreement with the US, which will allow the kingdom to access affordable financing from international capital markets, Jordan Times has reported. The $1.25bn agreement ensures that Jordan can continue to “provide critical services to its citizens as it enacts transformative economic reforms and hosts 600,000 refugees who have fled the violence inside Syria,” the US embassy said. Pursuant to the loan guarantee agreement, the US would guarantee repayment of principal and interest on the issuance of up to a $1bn, five-year Jordanian sovereign bond. This follows the US guarantee for a $1.25bn issuance last year.