Isis fight sends Iraq to debt markets
Baghdad plans to raise $6bn as ongoing battles with militants have decimated infrastructure. Iraq is heading to the bond markets with hopes of raising billions, as low oil prices and the fight against Isis eat into state finances. Deputy governor of Iraq’s central bank, Zuhair Ali Akbar, confirmed the country will issue $6bn (£3.9bn) in dollar-denominated debt, […]Annabelle Williams writes for City AM:
Baghdad plans to raise $6bn as ongoing battles with militants have decimated infrastructure. Iraq is heading to the bond markets with hopes of raising billions, as low oil prices and the fight against Isis eat into state finances. Deputy governor of Iraq’s central bank, Zuhair Ali Akbar, confirmed the country will issue $6bn (£3.9bn) in dollar-denominated debt, in its first bond issue for nearly a decade. Citi, Deutsche Bank and JP Morgan are understood to be working on the offering.
Fighting Isis has drained Iraq’s resources, and the government is hoping the bond sale will help to plug a hole in its fiscal deficit. It has been a particularly tough time for Iraq since its main revenue stream, oil, has halved in price over the past 12 months.
