Iran's 2020-21 Budget Bill Allows Municipalities to Issue Sukuk Bonds Worth $357m

As projected in the draft budget bill for the fiscal 2020-21, the Iranian government has permitted municipalities to issue sukuk (Islamic bonds) to the tune of 50 trillion rials ($357 million) for expanding urban public transportation.
Sukuk is a type of Islamic financial instrument that states ownership of a certain service or future profit of a lasting commodity transferred for a certain price. The security can help meet businesses’ immediate needs for liquidity with no access to end-users to finance their operations.
According to Mozhgan Khanlou, the spokesperson of Plan and Budget Organization, urban managers are required to allocate at least 50% of the bonds for streamlining the urban subway system, ISNA reported. 
The precise amount ultimately will be announced after the parliamentary ratification of the budget and its verification by the Guardians Council, the constitutional body in charge of vetting legislative bills.