Economy, Business And Markets

Plans Underway to Issue $1.4b of Sukuk

Plans Underway to Issue $1.4b of Sukuk Plans Underway to Issue $1.4b of Sukuk

Plans are underway to print 40 trillion rial ($1.4 billion) worth of sukuks or Islamic bonds, adding to the existing participatory bonds, later in the fiscal year which started March 21, a capital market expert announced.

"Given recent developments in the foreign arena and macroeconomic policies adopted by the administration, plans are underway to print 40 trillion rials of sukuks," Seyed Hassan Hosseini, managing director of Capital Market Central Asset Management Company, said on Sunday, as reported by IRNA.

He noted that the existing capacity of the Iranian capital market makes it necessary for officials to utilize sukuks more seriously. He called on experts "to cooperate in designing bonds for various target markets."

He believes that the Iranian capital market can serve as a fund for financing both public and private projects.

To make market more transparent, Hosseini suggests more sukuks be printed and a mechanism be developed to oversee distribution of funds so that officials would be able to prevent money laundering and to ensure real economic growth.

The asset management company acts as a trustee that constantly reviews and comments on the consumption of funds, maintenance of accounts, financial statements, and performance of the issuer according to the signed contract to maintain the interests of the owners of securities and gain assurance about the accuracy of issuer’s activities.

Among other responsibilities of the company is to do all administrative, financial, managerial, legal and lawful responsibilities of an SPV, maintain the accounts and financial books of the institution and rejecting them after the end of the contract.