sukuk bonds Archives - Iran News Daily https://irannewsdaily.com/tag/sukuk-bonds/ Tue, 29 Sep 2020 04:44:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.4 https://irannewsdaily.com/wp-content/uploads/2020/04/cropped-iranlogo-32x32.png sukuk bonds Archives - Iran News Daily https://irannewsdaily.com/tag/sukuk-bonds/ 32 32 Early Repayment of Sukuk Bonds Through Crude Oil Allowed https://irannewsdaily.com/2020/09/early-repayment-of-sukuk-bonds-through-crude-oil-allowed/ https://irannewsdaily.com/2020/09/early-repayment-of-sukuk-bonds-through-crude-oil-allowed/#respond Tue, 29 Sep 2020 04:44:16 +0000 https://irannewsdaily.com/?p=118892 TEHRAN (Iran News) – Iran’s Finance Ministry issued a notice allowing the repayment of sukuk, debt bonds that are compliant with Islamic financial principles, through the use of export crude. The ministry said that sukuk holders whose bonds mature before May 2021 could apply to receive the equivalent of their bonds and their interest in […]

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]]> TEHRAN (Iran News) – Iran’s Finance Ministry issued a notice allowing the repayment of sukuk, debt bonds that are compliant with Islamic financial principles, through the use of export crude.

The ministry said that sukuk holders whose bonds mature before May 2021 could apply to receive the equivalent of their bonds and their interest in crude cargoes, Press TV reported.

The announcement marks the first time the Iranian government is using oil for repayment of sukuk bonds issued domestically.

A plan earlier this year to issue two-year oil-backed bonds reportedly failed after disputes emerged between various branches of the government on how the issuance would impact other financial markets, including the Tehran Stock Exchange where trade was largely booming before the plan was announced earlier in August.

Critics said at the time that backing bonds through future oil sales would create a huge financial burden for the next administrative governments.

However, head of Iran’s Plan and Budget Organization (PBO) said on Saturday that parts of oil shipments that have been planned for sale to finance the budget in Iran’s next fiscal year would be offered in the form of future contracts.

Mohammad-Baqer Nobakht, a deputy of the president, said such future contracts could also be applicable to the current year’s budget.

Iran has used bond issuance to shore up finances that have been affected by lower sales of oil, mainly due to the American sanctions as well as lower demand for crude in the international markets.

Recent reports have suggested that Iran’s crude exports increased significantly in September, to nearly 1.5 million barrels per day (mbd), from lows of 0.5 mbd seen in recent months.

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]]> https://irannewsdaily.com/2020/09/early-repayment-of-sukuk-bonds-through-crude-oil-allowed/feed/ 0 Iran: $1.12b worth of sukuk bonds issued https://irannewsdaily.com/2020/05/iran-1-12b-worth-of-sukuk-bonds-issued/ https://irannewsdaily.com/2020/05/iran-1-12b-worth-of-sukuk-bonds-issued/#respond Mon, 04 May 2020 03:54:41 +0000 https://irannewsdaily.com/?p=109647 TEHRAN (Iran News) – The government of Iran has authorized a decision to issue up to $1.12 billion worth of new Sukuk bonds to fund various projects in the current Iranian year (started March 20). The decision signed by Vice President Eshaq Jahangiri allowed government departments and municipalities across Iran to issue up to 180 […]

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]]> TEHRAN (Iran News) – The government of Iran has authorized a decision to issue up to $1.12 billion worth of new Sukuk bonds to fund various projects in the current Iranian year (started March 20).

The decision signed by Vice President Eshaq Jahangiri allowed government departments and municipalities across Iran to issue up to 180 trillion rials of Sukuk, the Islamic sharia-compliant bonds, for the purpose of finishing infrastructure projects until the end of the current calendar year on March 20, 2021, Press TV reported.

Iran’s Interior Ministry would oversee the issuance of around 80 trillion rials (nearly $500 million) worth of securities by municipalities and their subsidiary organizations, said the decree signed by Jahangiri.

It added ministries of oil, industries, and energy would be allowed to issue 35 trillion rials (nearly $218 million) worth of Sukuk bonds for investment in major projects. Oil and gas projects would be prioritized in the plan and the Oil Ministry can issue the securities in foreign currencies, it said.

Government companies, which also include major oil and gas firms operating energy facilities, will be allowed to issue 65 trillion rials (over $400 million) of Sukuk bonds for projects that are justified from “technical, economic, financial and environmental” points of view, said the decree.

Issuing Sukuk bonds has become a popular tool for attracting investments in Iran, especially at a time of a major boom in trade in the country’s stock markets.

Investors prefer the government-backed bonds mainly because of their high yields and the fact that they are concentrated in established industries like energy and mining.

Experts believe the issuance of Sukuk bonds can be key to efforts by the government of Iran to offset economic losses suffered from a series of US sanctions imposed on the country’s direct sale of oil.

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