KURDISTAN could make its debut on international capital markets this week, with dozens of City investors expected to back the oil-rich region in northern Iraq.
But the long-awaited bond is likely to be postponed due to market uncertainty over the ongoing Greek debt crisis, according to people familiar with the deal, with one source saying: “Greece is going to determine the timing.”
A new law passed earlier this year by Kurdistan’s regional government cleared the way for up to $5bn (£3.2bn) to be raised from capital markets in order to fund infrastructure projects.
A delegation of Kurdish regional government officials led a roadshow in London last month to drum up interest in the bond. It is understood that officials met with more than 80 investors during the roadshow, with one source saying there was a “huge amount” of interest in the bond.
Goldman Sachs and Deutsche Bank are handling the deal, which is expected to raise between $500m (£320m) and $1bn (£640m), according to a report in the Sunday Times.
The bond is expected to be priced with an interest rate of between 11 and 12 per cent.