• Business And Markets

    $80m Bonds Sold 

    The government sold 23 trillion rials ($79.3 million) bonds in the latest auction held weekly to raise funds for its budget deficits.  

    Banks, non-bank credit institutions, investment funds and institutional investors in the stock market are the main buyers of bonds. 

    This week buyers in the interbank market were four banks and credit institutions together putting bids worth 12.6 trillion rials. Retail and institutional buyers took 14.3 trillion rials in debt. 

    The government has generated 361 trillion rials ($1.2 billion) in 15 auctions. Banks and credit institutions accounted for about 35% of the total while capital market investors took the rest. 

    The CBI said it will hold the next auction on Tuesday and offer 63 trillion rials ($217m) bonds. 

    In addition to bonds, the Economy Ministry says the government sold treasury bills 350 trillion rials ($1.2b) since the beginning of fiscal year in March. Treasury bills are underwritten and given to government contractors in lieu of unpaid bills.

    The government plans to sell 373 trillion rials ($1.28b) in new debt by March 2023. 

    Bond sales are in line with provisions of the 2022-23 budget in which the government is allowed to sell 860 trillion rials ($2.8b) bonds this year.