Ijarah Sukuk Worth $900m Issued

The government issued 35 trillion rials ($900.2 million) worth of Ijarah Sukuk on Iran Fara Bourse on Wednesday. They were made up of 20 million “SI03” valued at 20 trillion rials ($515 million) issued by the Ministry of Education with a maturity date of February 6, 2021, and 1.5 million “SI41” worth 15 trillion rials ($385 million) issued by the Ministry of Science, Research and Technology set to mature on March 14, 2021. Both bonds have a 15% yield to maturity and pay every six months, Bourse Press reported. Ijarah bonds basically exchange the future proceeds of the issuer’s assets for a lump payment. They are the most widely used form of the 14 existing types of Islamic bonds. In Iran, they were first introduced in 2011.