Here come Iraqi bonds

Iraq is getting ready to sell $US6 billion in debt.

According to a report from Bloomberg on Tuesday, Iraq is preparing to offer bonds at some point this year in what would be its first debt sale in nearly 10 years.

Bloomberg, citing people familiar with the program, said Iraq plans to meet with investors as early as September.

According to Bloomberg, the director general of Iraq’s central bank, Muneer Mohammed Omran, said Citigroup, Deutsche Bank, and JPMorgan will handle the offering.

JPMorgan, Citigroup, and Deutsche Bank all declined to comment.

Iraq, which is a major oil producer, has been dealing with a ballooning budget deficit due to the decline in oil prices.

Iraq has still been pumping oil, however, despite the massive drop in prices, and according to the International Energy Agency, Iraq’s production in July hit a record high.

In its latest report, the IEA wrote that, “Muscular pumping from OPEC’s top producers Saudi Arabia and Iraq has boosted the group’s flows to 31.8 [million barrels per day] — the highest in three years.”

On Tuesday, the price of Brent crude oil, the international benchmark, was little change near $US48.70 a barrel, a roughly 6-year low. According The Wall Street Journal, Iraq would need Brent prices to average $US100.60 to balance its 2015 budget.

Read the full report at Bloomberg here »

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.