The Iranian capital market hosted a new type of Islamic debt security on Tuesday, as the government issued 30 trillion rials (about $670 million) worth of Manfa’ah sukuk at the over-the-counter exchange Iran Fara Bourse.
The 42-month bonds, bearing a maximum of 20.1% annual interest, will be backed by 51 trillion rials ($1.13 billion) of government revenues sourced from 100% of state-exclusive profits in National Iranian Oil Refining & Distribution Company and Telecommunications Infrastructure Company, as well as 78% in National Iranian Gas Company, Gholamreza Aboutorabi, the head of Capital Market Central Asset Management Company, announced.
Each Manfa’ah sukuk is priced at 1 million rials ($22.2).
Manfa’ah or usufruct sukuk are valuable financial deeds that indicate the ownership of the holder on a certain service or future profits of a durable asset.
March 06, 2018 18:56
0
New Form of Islamic Bond Makes Debut at Iran Fara Bourse
The new 42-month bonds, bearing a maximum of 20.1% annual interest, will be backed by 51 trillion rials ($1.13 billion) of government revenues
Risk-free, high-return investment options such as certificates of deposit and government bonds would naturally make investors shy away from risky options such as equity market investment
Add new comment