– 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.
– 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%.
– 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.
– 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.
– 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.
– 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.
– 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.
– Today 10% of East Azarbayejan Pegah Dairy (GHPZ1) went public on Iran Fara Bourse through book building as the 9th IPO of current Persian year (2017/18). The ticker priced at IRR 3,355 and each individual and institutional trading code got 155 shares. The company foretasted an EPS of IRR 332 for the coming period, make its P/E ratio near 10 which still is double of its peer group.
Today a new directive placed into effect by Iranian SEO aiming to amend sever shortcomings of Tehran Stock Exchange in regards of tickers’ halts, suspensions and re-openings. Committing to its basic duties for a more transparent and liquid stock market, Securities and Exchange Organization, amended the main headlines on previous bylaw governing tickers closure and re-opening.
– Despite all the political tensions from US side, European banks are still eager to engage more deeply with Iranian Banks. According to an interview with one of financial directors (Ulrich von Zanthier) of KPMG, one of the world’s auditing big $, EU banks are showing interest in Iranian market. In his opinion, business with Iran is gradually lifting and it will become more into effect in near future. The German official mentioned Denmark’s Danske Bank and Austria’s Oberbank as major lenders that have already stepped in to finance projects in Iran. Von Zanthier said more than 1,000 correspondent banks in Germany can provide a variety of services to Iranians and it is not essential at present to insist on linking up with big banks.