Iraq: Iraq May Issue $5 Billion Bonds, to Pay Oil Firms Soon: Minister

Mar 18, 2015 | Maggie Fick, Reuters
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Iraq is considering an international issue of $5 billion worth of five-year, U.S. dollar-denominated bonds to help cover its budget deficit, and will soon start paying some debts to foreign oil companies, Finance Minister Hoshiyar Zebari said on Wednesday.

"For the government bonds, we will start the discussions with Citibank and Deutsche Bank tomorrow," Zebari told Reuters, referring to the two banks Baghdad has engaged to advise on the issue.

"We are thinking of borrowing through the issuance of government bonds worth $5 billion, to be sold outside of Iraq."

A $5 billion bond issue could prove a large amount for international investors to digest at one time, especially given political and economic instability in Iraq. Zebari did not elaborate on the timing or financial terms of the plan.