Jordan repays $1bn eurobonds to cut borrowing costs

Jordan has reportedly repaid its entire $1 billion in eurobonds maturing in January to cut borrowing costs and ease debt-servicing pressure.

The move marks the first early redemption of eurobonds in decades, the Jordan Times reported, quoting a finance ministry statement.

The bonds were issued in November 2015 with an interest rate of 6.125 percent.

The government repaid the remaining $612 million, including accrued interest, this month after settling $388 million in November last year.

The repayments were financed through the issuance of $700 million in new eurobonds also in November 2025, with a 5.75 percent interest rate and a seven-year maturity.

Additional financing was secured through concessional loans and sukuk at average interest rates of 5-5.5 percent last year.

Jordan approved its 2026 budget in November, with a deficit estimated at 2.1 billion dinars ($2.9 billion), nearly 4.6 percent of forecast 2026 GDP. 

The budget forecasts capital spending of around 1.6 billion dinars, up from 2025 levels.

In December the International Monetary Fund said it would release funds totalling $240 million to support Jordan’s economic reforms.

Jordan is committed to reducing public debt to 80 percent of GDP by 2028 through gradual fiscal consolidation and cutting losses at public utilities.

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