Iran Alternative Investment Ecosystem is considered as a toddler contrary to what the advanced world has achieved so far. This is direr for Iranian Startups with a lifetime of less than a decade, however, some of them have reached acceptable levels considering all the limitations and impediments towards their way, yet there are issues that need most imminent attention of all participant or in near future we will face a load of failed startups and their frustrated founders whom once was young and restless!
USD/IRR priced at 75,230 on Iran FX Secondary Market!
– Following the recent policies about making a secondary market for exporters to provide their FX revenues on a fair market price to importers, yesterday, the first trade of said kind was carried out Iran FX Secondary Market at USD/IRR rate of 75,230.
Taxes lowered by 80% on Iran Stock Market!
– In an attempt to support the pouring money sources into Iran Stock Market, the economy coordinating high council has decided to lower taxes on equity sales by 80%. Traders were obliged to pay 0.5% tax upon the sale of their equities before and now the figure reduced to only 0.1%.
Iran Food Industry benefits from Islamic Corporate Sukuks!
– Iranian food industry is to utilize the capacity of Iran Capital Market covering its financing needs by issuing Islamic Corporate Sukuks. Tomorrow, Kourosh food industry co. (a private joint stock firm) will publish IRR 500 bn (USD 11.8 mn) worth of Murabaha Sukuks on Iran Fara Bourse. The securities are going to be mature in 2 years and have an annual yield of 16%. Mellat Investment Bank is the underwriter and book runner of these securities while Mellat Bank will act as the guarantor to this issue.
In our last post, we dipped our toes into the Iran Alternative Investment ecosystem with a hint of listed VC funds, their laws, regulations and in general the imposed provisions on said investment funds. We are now to explore more about a very new scheme introduced, officially, just recently by Iran Fara Bourse. Although there were some old practices on this instrument in form of social and charity events, however, its conjugate with a capital market face is something that shall be considered as a toddler with lots of unknowns and question marks yet. Yes, we are talking about the “Equity Crowdfunding”!
USD/IRR is to price at Tehran Stock Exchange!
– The ministry of economy and financial affairs has announced that from next week on, the export FX revenues are to be offered in Tehran Stock Exchange for the importers to buy their currency needs at an agreed price after submitting their import orders. Exporters will be rewarded with the difference between the market price and their export declaration papers. Having a secondary market for the FX and stock exchange being that market will be greatly in favour of all economy participants and will remove rents from Iran’s chaotic FX market after all.
Showing by name, Iran Alternative Investment is simply a getaway for conventional investment schemes. If listed equities, bonds (Sukuks) and bank deposits are considered as conventional in Iranian investment ecosystem, then ripping the way off for other instruments shall be named alternative.
Traditionally, international investors have always had their eye on Iranian greenfield investment schemes in form of private equity. After some time, the opportunities in the Iranian capital and debt markets caught their eyes
Winner Iranian Mutual Funds has been announced!
– Following the non-stop advancement of Iranian capital market, the atmosphere of Iranian Mutual Funds is greatly positive and said funds have returned their investors handsomely over 1397 (2018/19) Q3. Since the access to Iranian capital market is more eased via mutual funds, foreign investors are now more leaned to participate in such schemes. The below tables are to demonstrate details of “different types” performances amid 180 active funds in Iran:
Iran Debt Market enjoys +30% yields!
– Today a new piece of Islamic T-Bills was supposed to be offered on Iran Fara Bourse. Being the second issue of the new Islamic treasury bills IPO round on Iran Debt Market, the TB291 has a value of IRR 10,000 bn (USD 235.7 mn) and will be matured on Aug 14, 2019. The older issues with close maturity dates are TB181 and TB191 which has a YTM of 26.22% and 25.89% respectively. However, the new offer did not price at today’s session. The below table demonstrates issues with highest yields on the last trading session:
FX priorities in Iran Economy!
– Continuing it FX unification policies, the Iranian government is just one step shy of ratifying the latest directive on Iran economy FX regime. According to early news today (unofficial), the central bank of Iran offered a bylaw to the administration consisting of 3 different priorities for currency usage: