10 trillion rials Manfa’ah Bonds to Help Finance Oil Projects
Manfa’ah Sukuk worth 10 trillion rials ($86 million) were sold Monday in Iran Fara Bourse stock exchange to help finance oil projects.
According to the Security and Exchange News Agency (SENA), the bonds were sold for the first time via a consortium comprising Tamadon Investment Bank as the leading investment company in charge of asset management and share subscription plus Parsian Lotus, Mellat, Omid, Kardan, Amin, and Noving investment companies.
Manfa’ah Sukuk is a security which states one’s ownership of a certain service or future profit of a lasting commodity transferred for a certain price. The security can help meet businesses’ immediate needs for liquidity with no access to an end-user to finance their operations.
According to a notice published on the IFB website, 10 million Manfa’ah bonds, each worth 1 million rials, were sold in IFB’s Structured Financial Products market. The bonds mature in 3 years with 19% interest to be paid every six months from the date of issue.
Tamadon company sold four trillion rials worth of shares followed by Parsian Lotus with two trillion rials. Mellat, Omid, and Kardan each 1 trillion rials and Amin and Novin 500 billion rials each worth of Manfa’ah bonds.
According to SENA, the national Iranian Oil Company has guaranteed the payment of the principal bonds and the Oil Industry Pension Fund is committed to paying the interest.
Source: Financial Tribune