Iranian Gov’t Issues Debts Worth $780m

The government has issued 20 million bonds worth 3 trillion rials (about $780 million) at the over-the-counter Iran Fara Bourse to pay its debts to the Ministry of Education and those accumulated over the public health insurance scheme.

The four-year bonds pay a nominal rate of 20% every six months and are priced at 1 million rials ($26) each, Securities and Exchange News Agency reported.

Two trillion rials ($520 million) of the sukuk (Islamic bonds) were issued by the Ministry of Economic Affairs and Finance in the Ijarah format and 1 trillion rials ($260 million) were issued by the Ministry of Cooperatives, Labor and Social Welfare as Murabaha bonds.

The purchase deadline is Feb. 8 for Ijarah and Feb. 12 for Murabaha bonds. Ijarah sukuk are securities representing the ownership of well-defined assets tied up to a lease contract, the rent for which is the return payable to sukuk holders.

Murabaha sukuk are certificates of equal value issued for financing the purchase of goods based on Murabaha contract. Sukuk holders become the owners of the underlying goods.