Business And Markets

Bond Sale Generates $78m

Bond Sale Generates $78mBond Sale Generates $78m

The government sold bonds worth 19.5 trillion rials ($78 million) at the weekly auction on Tuesday -- apparently   higher compared with the nine months’ average but way lower than the previous week. 
A press statement of the Central Bank of Iran said three banks put in bids collectively worth 6 trillion rials, 5 trillion rials of which was approved by the Economy Ministry. The remaining were sold to retail and institutional traders. 
This week’s sale was comparably lower than the last week when the government generated more than 54 trillion rials ($216m) but higher than the nine months’ average of about 11 trillion rials.    
Starting in May, the auctions are held to raise funds to help the government plug its budget deficits. Save for a strong comeback last week, the government had failed to find buyers for its debt for two months.
Buyers were initially banks and investment funds but later the Ministry of Economy extended the bond trade to stock market to enable retail and institutional investors to take part. 
In bid to encourage investors the Economy Ministry last month allowed equity market investors to buy bonds throughout trading week.  Prior to that investors could buy bonds only one day in a week (Tuesdays) when the weekly auctions are held. 
Caption: This week’s sale was lower than the last week when the government generated 54 trillion rials ($216m).

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