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Ammon News - AMMONNEWS - The Hashemite Kingdom of Jordan closed on its offering of a total $1.5 billion in sovereign bonds guaranteed by the United States of America. These guarantees are part of a broader U.S. commitment to support Jordanian stability, security, and economic growth. President Obama informed King Abdullah of the United States’ intention to provide these guarantees during their December 5, 2014 meeting in Washington, D.C.

The proceeds of the U.S.-guaranteed bonds will help to ensure that Jordan can continue to provide critical services to its citizens as it hosts the nearly 630,000 Syrian refugees in Jordan. The policy framework within the loan guarantee agreement is designed to support the implementation of specific economic reforms that the Government of Jordan has been pursuing to promote economic stability, growth and prosperity for the Jordanian people.

Today’s issuances of $1 billion seven year and $500 million ten year Jordanian sovereign bonds were supported by a 100 percent guarantee of the repayment of principal and interest by the United States Government. The $1 billion and $500 million issuances were priced at coupon rates of 2.578 percent and 3 percent, respectively.

The United States has previously guaranteed Jordan’s issuance of sovereign bonds worth $1.25 billion in 2013 and $1 billion in 2014. Both of the previous guarantees were successful in supporting Jordan’s reform efforts during a time of regional instability. This third guarantee will further support that strategy as well as Jordan’s ability to independently access international capital markets.