The government sold only 8.2 trillion rials ($26.4 million) in the ninth bond auction held by the Central Bank of Iran on Tuesday.
This was the lowest sale of debt securities by the government since bond auctions started in May. The government made an average of 25 trillion rials ($80.6m) in bonds in eight auctions, according to data released by the Economy Ministry.
Bond auctions are held to help raise funds for the government’s ballooning budget deficits. The main buyers of debt are banks, non-bank credit institutions, investment funds and institutional investors in the stock market. The CBI holds the auctions on behalf of the Economy Ministry.
As in the last two auctions, banks stayed away and institutional investors in the bourse, including underwriting companies, investment banks and mutual funds were the main buyers.
Auction data shows that the government generated 227 trillion rials ($732m) from bonds in nine auctions.
Lenders accounted for about 32% of the total bonds and capital market investors for the rest.
Treasury bonds worth 300 trillion rials ($967m) were issued since the beginning of the current fiscal in March. Treasury bill are underwritten and given to government contractors in lieu of unpaid bills.
The CBI said it will hold the next auction on July 26 to sell 87.3 trillion rials ($281m) bonds.
Bond sale is in line with provisions of the 2022-23 budget law in which the government can offer 860 trillion rials ($2.7 billion) bonds.
