Iraq’s Al-Rafidain Bank Extends Issuance of Reconstruction Bonds; Iraq Joins EBRD as New Shareholder, 1 DEC

 Iraq’s Al-Rafidain Bank Extends Issuance of Reconstruction Bonds; Iraq Joins EBRD as New Shareholder

In an economic move guided by the Ministry of Finance and the Central Bank of Iraq, Al-Rafidain Bank, Iraq’s largest bank, has declared the extension of its reconstruction bonds issuance to citizens. These bonds are accessible until November 9, 2023 and are presented in two denominations: a 500,000 Iraqi dinar bond and a 1,000,000 Iraqi dinar bond.

Details of the Bonds

The 500,000 Iraqi dinar bond carries a 6% annual interest rate paid semi-annually over a two-year term. On the other hand, the 1,000,000 Iraqi dinar bond offers an 8% annual interest rate, also paid semi-annually, but over a four-year term. Citizens aiming to acquire these bonds are required to apply directly to the bank with their identification documents. Upon payment, they will be given a receipt which they are advised to maintain until the bond is prepared.

Trading and Expiry of the Bonds

The bonds are eligible for trading in the securities market, providing ample opportunities for bondholders. In terms of their longevity, the bonds hold a validity of 10 years post their due date. After this period, they are moved to the Ministry of Finance. As a significant financial advantage, these reconstruction bonds are exempt from taxes according to the Federal Budget Law No. 13 of 2023.

EBRD’s Support and UNDP’s Initiative

Alongside this development, the European Bank for Reconstruction and Development (EBRD) has marked Iraq as its newest shareholder, signifying the bank’s commitment to finance Iraq’s green transition and fortify its banking sector. Iraq’s inclusion in the EBRD’s southern and eastern Mediterranean (Semed) region is part of a broader shareholder expansion, extending into sub-Saharan Africa. Furthermore, the United Nations Development Programme (UNDP) has initiated the first joint dialogue on reintegration and social cohesion in Ninewa Governorate. This dialogue convened a varied set of opinion leaders to deliberate on ways to reestablish the communal bonds that once united their communities before the ISIS insurgency seven years ago.

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