Despite the lingering COVID-19 scars globally and crippling
inflation, Jordan has once again demonstrated its fiscal and financial
resilience. Recently, the Kingdom successfully completed a Eurobond issuance to
global markets.
اضافة اعلان
Intending to attract $750 million, the total bidding reached an
astounding $4.7 billion, prompting authorities to raise the target to $1.25
billion at an interest rate of 7.5 percent and for a five-year and a nine-month
term.
Due to the success of the Eurobond, we can rest assured that
Jordan's credit reputation is solid, especially when several countries would
not dare tread into the realm of market financing without such strong
fundamentals, because they know very well that walking this path recklessly is
destined for a dead-end.
In fact, Jordan's latest Eurobond issue has attracted a lot of
attention, and for a good reason. This success has lured investors from across
the board, including leading global investment funds in the US, UK, Europe,
Asia, and GCC countries.
Jordan's latest Eurobond issue has attracted a lot of attention, and for a good reason. This success has lured investors from across the board, including leading global investment funds in the US, UK, Europe, Asia, and GCC countries.
In an exclusive interview, Minister of Finance Mohamad Al-Ississ
stated that investors from the "big players" club have come to Jordan
because they were engrossed by the narrative of the Eurobond discourse, which
is a story of credible "reform".
Strategic decision-making
Undoubtedly, the "big boys" had noticed that a month
earlier, S&P, the international credit rating agency, stated that Jordan's
reform process was on the right track and moving at the right pace, especially
after the authorities broadened the tax base and targeted tax evasion, not
hiking taxes and hence without affecting growth. Prior to S&P, Moody’s and
Fitch upgraded Jordan’s outlook.
"This issue is a test of our macro-fiscal stability… and we
are in a league of our own: We are the only oil-importing country in the region
that has recorded these levels with its Eurobond issuance pledges," said
Ississ. Those who choose to invest in the Eurobond, he said, do so with
strategic prudence, not political thinking. This, according to Ississ, means
that Jordan's narrative is evidence-based and has withstood the scrutiny test
of the world's biggest investment houses.
The story of Jordan is one of reform, Ississ pointed out, and it
has resonated well in the global market, as shown in the oversubscription
level, the quality of the bidders, and the rate. This success has enhanced the
good reputation of Jordan and encouraged investors to come and experience it
firsthand. "It's very important to stand the real test with the real
players," the minister said, especially since these investors conduct
deep, rigorous analyses of each and every figure in the national fiscal
statements.
'Sells big'
Jordan's story "sells big" in non-partisan, strategic
circles. However, the key now is for us to capitalize on this reputation by
attracting Foreign Direct Investments to create jobs for our youth, said Ississ.
When Jordan can attract an array of leading fixed-income investors with a huge
FDI potential, failing to build on it and retain this remarkable interest in
the economy would surely be a missed opportunity when many of our peers are
facing macro fiscal challenges.
"This issue is a test of our macro-fiscal stability… and we are in a league of our own: We are the only oil-importing country in the region that has recorded these levels with its Eurobond issuance pledges.”
When these influential investors put their money into a bond issue
like this one, it means Jordan has the ability to fight for its niche. And It
is not too late. On the contrary, this is the right time to leap at this
opportunity and give these potential investors a story of resilience which they
are craving and many countries are envious of.
The officials in charge of the Eurobond have accomplished their
part of the job, but this is a very crucial relay race. As they pass the baton
to the next player, they need to sustain the success trend. The ultimate goal
is a dynamic economy with more job opportunities for Jordanians. This should be
the target for everyone.
Khalid Dalal is a former advisor at the Royal Hashemite Court, former
director of media and communication at the Office of His Majesty King Abdullah
II, and works currently as a senior advisor for media, strategic communication,
PR, international cooperation, marketing, business development, and fundraising
locally, regionally, and globally.
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