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TSE Eying Forex Bonds

TSE Eying Forex BondsTSE Eying Forex Bonds

Tehran Stock Exchange is testing the idea of creating foreign currency-denominated bonds, says Rouhollah Hosseini-Moqaddam.

Offering foreign currency bonds on TSE will erase the need to adopt stringent foreign standards and getting evaluated by a ratings agency, which are prerequisites for borrowing from international markets and easing borrowing for the cash-strapped economy, Mehr News Agency reported.

Hosseini-Moqaddam, who is TSE’s deputy for issuers and members, said, “We met and negotiated with a few large companies that are interested in issuing these bonds. We have also talked with the Central Bank of Iran.” Efforts to introduce foreign exchange futures and spot trading have grounded to a halt in recent months, given the slow pace of economic recovery in Iran and empty government coffers.

Moqaddam said foreign currency-denominated bonds could complement other securities in managing foreign exchange risk, especially companies that are export-oriented and earn their revenues in foreign currencies.

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