Iran issues Sukuk al Ijarah

Tehran—The Iranian Ministry of Finance issued IRR 5 trillion of four-year lease-based Sukuk on 16 March. Reuters reports that the bonds were sold through Iran Fara Bourse, Tehran’s over-the-counter market. The issue marks the first use by the Government of Iran of such bonds. Previously, in September 2015, another first had been notched up with the issuance of some $295 million in Islamic Treasury Bills on Iran Fara Bourse.
In a statement at the time, Amir Hamooni, CEO of Iran Fara Bourse commented, “Once sanctions are lifted by the early 2016, dollar or euro-denominated sukuk will be issued for an array of investors piled up to tap into Iran’s lucrative market.”
Deputy Economy Minister Shapour Mohammadi noted at the time that the Iranian Government is planning to continue issuing Islamic bonds, including T-bills. Reuters cites expectations that the Government will issue up to IRR 60 trillion in T-bills in 2016. “Banks could benefit from the debt market as a form of collateral, if the central bank gives its approval,” Mohammadi said last year. “We intend to introduce a law in 2016-17 to enable executive enterprises to accept these securities as credit or trade them at the bourse.”—Reuters

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