Issuance of salam sukuk for PGSOC
The salam securities issued by the largest gasoline producer in the country, namely Persian Gulf Star Oil Company, sold out in a fraction of seconds on Iran Energy Exchange (IRENEX). The financing facilitated by the issuance of 1,400,592 contracts with the base price of IRR 2,141,950. The bond’s yield rate is 20% paid on a daily basis to the holders of the salam.
Privatization 5 months through the current Iranian calendar
Iranian Privatization Organization (IPO) transferred 1.698 tr rials (about $48 mn at market exchange rate) worth of Iranian state-run companies’ shares to the private sector in the first five months of the present Iranian calendar year (March 20- August 21, 2016).
Iranian state-run companies transferred 29.662 tr rials (about $844 million at market exchange rate) worth of their shares to the private sector in the previous Iranian calendar year of 1394 (ended on March 19, 2016).
The Iranian government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year. Hundreds of state-owned companies have been privatized under the present interpretation of the Article 44 of Iran’s Constitution.
29% growth in tax collection
Iran’s direct tax income reached 275 trillion rials (about $7.77 bn) in the first four months of the current Iranian calendar year (March 21-July 21), cited Kamel Taqavinejad, the head of Iranian National Tax Administration (INTA).
According to Taqavinejad, the collected amount registers a 29 % growth, compared to the same period the year before.
“In the four months of the current Iranian calendar year, nearly 95 percent of predicted tax revenues in the country’s budget plan has been materialized,” he said.
President Hassan Rouhani’s economic strategy is to significantly reduce the government’s dependency on oil and instead collect tax more systematically.
According to the budget bill for the current Iranian calendar year (which began on March 20, 2016) tax incomes are projected to rise by 14 percent from the previous year’s 880 trillion rials (about $25 bn at market exchange rate) to one quadrillion rials (about $28.4 bn at market exchange rate), aid earlier in January, Iran’s Management and Planning Organization director, Mr. Nobakht.
As reported in late September 2015, the Iranian government managed to earn more from tax receipts than oil revenues for the first time in almost half a century.
Iran’s 4-month petchem exports up 41.5% YOY
Value of petrochemical products exports reached $6.769 bn in the first four months of the current Iranian calendar year (March 20-July 21), showing 41.51 percent growth, compared to the same period in the preceding year, according to Iran’s Customs Administration.
The country exported 13.684 million tons of petrochemical products during the first four months of this year.
In the past Iranian calendar year (ended on March 19, 2016), 46 million tons of petrochemicals were produced in Iran, using 80 percent capacity of domestic plants, said Alimohammad Bossaqzadeh, the control manager of National Petrochemical Company (NPC).
In June 2015, Mohammad-Hassan Peyvandi, then-deputy managing director of NPC, said Iran planned to add up its petrochemical production to over 180 million tons in the course of ten years.
Also, as Oil Minister Bijan Namdar Zanganeh announced in February, the country plans to augment its petrochemical production worth by about 30 percent to $22 bn by the next two years.
Iran’s trade surplus over $3.4 bn
Iran’s trade surplus exceeded $3.44 bn in the first four months of the current Persian year (March 20- July 21), the country’s Customs Administration posted on its website.Non-oil exports in the period stood at $16.30 bn, showing 21.11 percent increase compared to the corresponding period in the preceding year.
The country owes the rise in its non-oil exports to 41.5 percent hike in the exports of the petrochemical products in the four months thorough the current Iranian year.
Iran’s Customs Administration said in an announcement in early April that the country had a trade surplus of $916 million over the aforementioned period. It said the total value of exports stood at $42.4 bn against $41.4 bn in imports. Both figures indicated a decrease of respectively 16 percent and 23 percent compared to the same period the previous year. The volume of exports stood at 93.5 mn tons while the volume of imports stood at 35.7 mn tons, indicating a decrease of 7 percent and 18 percent, respectively.
In the Market
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com