The Economy Ministry sold 2 trillion rials ($41.6 million) of Islamic bonds on Iran Fara Bourse on Sunday to finance the establishment of a railroad connecting three major cities.
The bonds’ underwriting announcement published on the website of the over-the-counter exchange states that the cash raised will go toward prepayment for the construction of Tehran-Qom-Isfahan high-speed railroad.
The 42-month Musharakah sukuk, traded at 1 million rials (about $20) each, are tax-free and bear 20% interest per year paid every six months. The Management and Planning Organization has guaranteed the bonds.
Musharakah bonds represent part-ownership of a particular project.
March 18, 2018 19:57
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$41m in Securities Sold to Finance Iran's Rail Project
The 42-month Musharakah sukuk, traded at 1 million rials (about $20) each, are tax-free and bear 20% interest per year paid every six months
Nearly 740 trillion rials ($16 billion) worth of bonds will reach their maturity date next year
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