Tose'e Etemad Mobin, parent company of Telecommunication Company of Iran, is to issue 5 trillion rials ($46 million) worth of equity-based Ijarah sukuk on Iran Fara Bourse (an over counter market for securities and shares).
According to the Security and Exchange News Agency, 2.2 billion rent-to-own four-year bonds, each worth 2,248 rials, will be offered by IFB this week to repay TCI debts.
The bonds have 16% yield which will be paid by the Central Securities Depository of Iran every six months
Tejarat Bnak has guaranteed the repayment of bonds and Parsian Brokerage Company is the agent for selling bonds.
On the merits of the equity-based Ijarah bonds, SENA notes that if the issuer’s assets don’t suffice for issuing bonds or if they don’t wish to back the bonds with their physical assets, they can use bonds instead.
Additionally, as the bonds are considered as the underlying asset for issuing bonds,
Ijarah sukuk are securities representing ownership of well-defined assets tied to a lease contract, the rent for which is the return payable to sukuk holders.
