Jordan picks banks for $1.25 bln U.S.-guaranteed sovereign bond

DUBAI, Oct 28 (Reuters) - The Kingdom of Jordan has pickedthree banks to arrange a $1.25 billion sovereign bond issuewhich will be guaranteed by the United States, a document fromlead managers said on Monday.

The guarantee, to be provided through the U.S. Agency forInternational Development, is part of an agreement reached inAugust, whereby the U.S. would pay for the principal andinterest on a sovereign debt issue from the Middle Easternnation.

Citigroup Inc, HSBC Holdings and J.P. MorganChase Inc will arrange the seven-year issue, thedocument said, which will settle on Oct. 31.

Funds from the bond issue will be used to assist withJordan's economic reform programme, the document added.