17016
New Mazot Securities to Help Finance NIOC
Economy, Business And Markets

New Mazot Securities to Help Finance NIOC

The second batch of Mazot Futures will be offered in the Iran Energy Exchange before May 21. Amin Investment Bank will handle their sale.
Due to the successful sale of one trillion rials ($30 million at market exchange rate) of the securities in two phases, the Securities and Exchange Organization and the National Iranian Oil Company are working to offer a second batch, Shana reported, citing Ali Hosseini, head of IRENEX.
Amin Investment Bank is likely to underwrite their sale and continue to make market for them. The bank handled the sale of the first trillion of the securities.
“The NIOC planned to raise three trillion rials in six 500-billion rial batches,” said Ali Khosroshahi, Amin’s senior asset management and investment analyst, in a phone interview with the Financial Tribune. “If the SEO gives the permit for further sales, we will handle its underwriting and market making.”
Iran’s oil futures (Salaf) are a special form of futures contract. Based on the contracts, the NIOC sells its products at a fixed price for delivery at a future date, but guarantees repurchase at a higher price at maturity. In other words the NIOC is paying interest on the futures to attract investors. The company is using the money to finance its expansionary plans.
The securities bear 23 percent interest which is calculated on a daily basis. The NIOC has guaranteed 25 percent interest at their maturity, which is 12 months. Furthermore, their return may rise further, but the NIOC can exercise its call option at 28 percent.
The securities will be offered through Tadbirgaran-e Farda Mercantile Exchange Co.
The first trillion of the securities was “well received” and 172 investors – institutional and non-institutional – bought the securities, Hosseini said.

Short URL : http://goo.gl/p6NWbI

You can also read ...

Deposits made in investment funds are also subject to the latest central bank directive.
While more than a year has passed since bank deposit interest...
Iran-Azerbaijan Rail Linkup in 6 Months
A railroad connecting the Iranian Caspian port city of Astara...
Mohammad Baqer Nobakht
Head of Planning and Budget Organization Mohammad Baqer...
Serbia Abolishes Visas for Iranians
The Serbian government on Tuesday passed a decision on the...
Bank Sepah Allocated $11b  From NDFI Forex Resources
Bank Sepah allocated $11.17 billion from the National...
Chadormalu Mining and Industrial Company is one of the Middle East’s largest iron ore concentrate producers.
Iran’s Department of Environment has issued a permit for...
The Austrian software update will take until spring next year.
Austria’s Transport Minister Joerg Leichtfried said he had...
New Economy, Industries Ministers Join MCC
The first Money and Credit Council meeting after the...

Trending

Googleplus