Foreign Investments in Iran Capital Market reaches new highs!
– Announcing the IRR 20,000 bn worth of foreign investors trade value in Iran Capital market, the Vice-Chairman International & Foreign Investment Affairs at the Securities and Exchange Organization (SEO) of Iran added that a huge part of this money has entered into Iran’s debt market.
Iran Fara Bourse hosts another piece of Islamic Treasuries!
– Following the settlement process of Iranian government debts to industry sectors, today a new issue of ITBs worth IRR 19,000 bn (cUSD 451.3 mn) offered to public on Iran Fara Bourse under the ticker name of TB141. The securities have no coupon payments and will be issued at a discount to par. The below table demonstrate different scenarios for the pricing and YTM. However, the new T-bills priced at IRR 891,274 on Iran Fara Bourse today which led to a yield to maturity of 17.04% and a BEY of 15.84%.
Corporate Sukuk Murabaha offers on Iran Fara Bourse!
– Today the initial offering of cUSD 24.1 bn worth Sukuk Murabaha for Kerman Motor Co. takes place on Iran Fara Bourse for three consecutive days. This securities are to provide working capital to the company and has a nominal yield of 17% with coupons to be paid quarterly with a maturity of 24 months. This is another piece of corporate debt securities on Iran capital market with settlement period of T+1.
Rates to decline on Iran Capital Market fixed income funds!
– Recent stats revealed by Securities & Exchange Organization of Iran show significant decline on fixed income funds’ yields registered in the Iran Capital Market. The below comparison table indicates that on average Iranian fixed income mutual funds are now paying circa 2% less to their investors over the first 8 months of 1396 (2017/18). This is the direct effect of late Iran Central Bank directive on lowering interest rates and it could be counted as a good sign for Iranian economy in general.
Iran Banking Sector More Active in Europe!
– The recent blockage of some Iranian petrochemical companies’ bank accounts in China, which were then, experienced by Iranian citizens and students there, took negotiations and talks to be resolved; it appeared that they originated from severe implementation of FATF regulations and did not only focus on Iranians but they were applied to other countries wanting to open an account or transfer money.
Harmony Between Iran Debt Market & Iran Banking Sector!
– Going under pressure to stop the issuance of Islamic Treasury Bills since late last year, the Iran Debt Market started to see the re-entrance of such securities since September this year. On Saturday, the Iran Fara Bourse hosted IRR 9,000 bn worth of bills with a YTM of circa 15%. It seems that the Central Bank of Iran’s directive on lowering interest rate on bank deposits followed by strict supervision and precision in defining new rates has now hit the Iran Debt Market. The harmony between interests offered by the money and debt markets contains two hidden messages: one refers to the opportunity it offers to deepen the Iran Debt Market by more supply and the other deals with the positive effects of lower interest rates on other markets, which has the potential to turn the stock market into a more attractive one for fresh money.
USD 491.5 mn Sukuk Murabaha offered on Iran Fara Bourse!
– In an attempt to provide Government Trading Corporation Of Iran enough funds required for wheat purchases, the ministry of economic affairs and finance sold IRR 20,000 bn (USD 491.5 mn) worth of Sukuk Murabaha on Iran Fara Bourse the other day. The securities have maturity of 4 years with a nominal rate of 17% per annum and the coupons will be paid semi-annually by Central Securities Depository of Iran.
Iran Debt Market to Issue new Islamic Treasuries!
– In an attempt to develop Iran Debt Market further, the chair of Iran’s Securities and Exchange Organization announced new Treasuries are be offered in Iran Fara Bourse soon. According to Shapour Mohammadi there is an outstanding figure of cIRR 160,000 bn worth securities available in the Iran Debt Market now that are to be matured upon the year end. “There a huge potential for new Islamic treasuries in the Iran Debt Market now. Eyeing the budget bill, the administration is allowed to deploy cIRR 300,000 bn new securities into the Iran Capital Market and we are confident to to do as such” he continued. Below table demonstrate the latest status of outstanding ITBs in the Iran Debt Market. Analysts believe that if the new issues happen in a timely fashion and gradually, it could be easily absorbed into market without any dire effects on interest rates.
Iran Foreign Direct Investment, it’s all about safety!
By Alireza Hojjatnia
When it comes to Foreign Direct Investment (FDI), it is always better to be safe than sorry. Iran is no different from rest of the world. A rise in a nation’s FDI is hand in hand with uplifting its investment security protocols. The safer the county is, the more investments will flow in. This bond has some measures to be taken under consideration, for each of which, higher scores show a better made bed for Foreign Direct Investment. Despite the endless efforts of Iranians to attract more investments to their country, comparing global investment security indicators demonstrates the ugly truth of nation’s failure to deliver what shall be promised to foreigners.