Cleary Gottlieb represented the Republic of Iraq in the offering of $1 billion 2.149 percent guaranteed notes due 2022 backed by a full faith and credit guarantee issued by the U.S., acting by and through the U.S. Agency for International Development.
The guaranteed notes were offered pursuant to Section 3(a)(2) of the Securities Act of 1933. The underwriters for the offering were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC. The offering was launched on January 11, 2017, and closed on January 18, 2017.
The USAID guaranteed note issuance has enabled the Republic of Iraq to raise funding from the international capital markets to finance a portion of its budget deficit at a favorable interest rate. The guaranteed notes were priced at a 27 basis point spread over the yield on the U.S. five-year treasury at the time of pricing. The transaction represents the first financing by the Republic of Iraq in the international capital markets.