Bank Mellat to Issue Certificates of Deposit Worth $326m

Bank Mellat plans to sell 15 trillion rials ($326 million) worth of certificates of deposit during the next five trading days. The sale of CDs is scheduled to begin today and continue till Feb. 12. They have a 16% interest rate paid on a monthly basis and a 14% annual yield on repurchase before they mature in a year, Bourse Press reported. A certificate of deposit is a savings certificate with a fixed maturity date and specified interest rate, which can be issued in any denomination. Bank Mellat has recently announced that its investment arm Tosee Melli Group Investment Company plans for a major downsizing by selling off shares in 30 companies on Feb. 10 to be less of a business-owner and more of a bank, by adhering to articles 16 and 17 of the law on “removal of obstacles to competitive production and boosting the country’s financial system”. The law mandates all banks and financial institutions to privatize at least 33% of their surplus assets every year, especially those engaged in “non-banking activities”.