Business And Markets
0

$213m Salaf Securities Sold to Finance Oil Projects

$213m Salaf Securities Sold to Finance Oil Projects    $213m Salaf Securities Sold to Finance Oil Projects

Standard parallel salaf contracts worth 25 trillion rials ($213.6 million) were sold in the Iran Energy Exchange  Sept.3-4 to finance oil projects. 
In the first stage of the initial public offering, investors bought 1.7 million securities worth 13 trillion rials on Tuesday, according to IRENEX head, Ali Hosseini.  
In the second phase Wednesday, the remaining securities worth 12 trillion rials were sold and mature in 13 months.
Standard parallel salaf is an Islamic contract similar to futures, with the difference being that the contract’s total price must be paid in advance. 
Salaf securities were offered by the Ministry of Economy on behalf of the government on the derivatives market of the energy bourse, the IRENEX website reported. 
According to Hosseini, Salaf securities can also be traded via call and put option contracts. 
A call option gives the buyer the right, but not the obligation, to buy the underlying security at the exercise price, at or within a specified time. 
A put option gives the buyer the right, but not the obligation to sell the underlying security at the exercise price, at or within a specified time.
The initiative is a part of the fiscal budget (March 2019-20) which allows the government to issue up to $3 billion (in rials and foreign currency) to finance oil industry projects. 
Earnings from bonds should go for repaying the principal amount plus interest of matured bonds, reimburse liabilities to banks and pay contractors.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com