Rafidain Bank introduces third series of reconstruction bonds
BAGHDAD, 22 January – Rafidain Bank, one of Iraq’s leading financial institutions, has announced the launch of its third series of reconstruction bonds, in a move aimed at enhancing investment and aligning with the directives of the Ministry of Finance. The announcement was made on Monday, with the bank stating that the bonds will be available for purchase by citizens until January 30, 2024.
This latest issuance includes two types of bonds: a bond valued at 500,000 Iraqi dinars offering a 6 percent annual return on investment, paid semi-annually over two years, and a higher-value bond of 1,000,000 Iraqi dinars, which comes with an 8 percent annual returns, also paid every six months but over a span of four years.
Reconstruction bonds, also known as Emaar bonds, are financial instruments issued by governments to fund rebuilding efforts, especially in the wake of conflict or national disasters. These bonds play a crucial role in raising capital for infrastructure and economic recovery in post-conflict nations like Iraq.
To purchase these bonds, individuals must submit a direct request to Rafidain Bank, accompanied by their original identification documents. Upon purchasing a bond, the buyer receives a receipt from the bank, which is later exchanged for the actual bond.
One of the key features of these bonds is their tradability in the stock market, allowing investors to buy and sell the bonds. This flexibility adds an extra incentive for potential investors. The bonds have a maturity period of 10 years, after which they are considered expired and are transferred to the Ministry of Finance.
In an effort to make these bonds more appealing, the bank has declared that the purchase and trading of these bonds are exempt from taxes, as per the 2023 federal budget law. This tax exemption is expected to encourage more citizens to invest, thereby contributing to Iraq’s reconstruction and economic growth.
In a move to enhance investment initiatives and in accordance with the directives of the Ministry of Finance, Rafidain Bank is pleased to announce the offering of the third issuance of reconstruction bonds (Emaar bonds) for sale to the public, available until January 30, 2024. This follows the same mechanism as the first and second issues.
The bonds will be available in two denominations:
A bond worth 500,000 Iraqi dinars, carrying an annual interest rate of 6%, payable every six months over a two-year term.
A bond valued at 1,000,000 Iraqi dinars, offering an annual interest rate of 8%, paid every six months over a four-year term.
The bank confirms that individuals interested in purchasing these bonds must submit a direct application to the bank, accompanied by their original identification documents. Upon purchasing a bond, the buyer will receive a receipt from the bank, which should be kept until the bond is ready. The buyer will then need to bring this receipt back to the bank to receive the bond once it is prepared.
Furthermore, it is noted that these bonds can be traded in the stock market. They have a maturity period of 10 years following their expiration, after which they will be transferred to the Ministry of Finance. The purchase and trading of these offered bonds (Emaar bonds) are exempt from taxes, in accordance with Federal Budget Law No. 13 of 2023.