Amman: The Ministry of Finance has announced the successful completion of the repayment of Eurobonds due in January 2026. This follows an early repayment of a portion of the bonds, aimed at refinancing at a reduced cost and under improved terms to alleviate debt-service pressures in both the near and medium term.
According to Jordan News Agency, the Ministry confirmed that it fully redeemed the Eurobonds initially issued on November 10, 2015. These bonds, amounting to $1.0 billion, carried an interest rate of 6.125%. In January, the Ministry repaid $612 million along with the accrued interest, while an early repayment of $388 million took place in November 2025. This early repayment marks the first such occurrence in decades, strategically implemented to cut down interest costs.
The complete redemption was funded by issuing $700 million in Eurobonds in November 2025. These new bonds were issued at a 5.75% coupon with a seven-year tenor, achieving the lowest spread on Jordan's international issuances in decades. Additional funding was secured through a combination of concessional loans and the issuance of Islamic sukuk, with an average interest rate ranging between 5.0% and 5.5% over the past year. Part of the proceeds from these sources was deposited with the Central Bank of Jordan to cover Eurobond maturities due in 2026.
The Ministry emphasized that this operation aligns with the government's public debt management strategy. The strategy focuses on substituting higher-cost debt with more concessional financing, thereby reducing the debt-service burden on the budget. It also aims to lower medium-term financing needs, reinforce debt sustainability, and support a declining debt-to-GDP trajectory.