Sukuk Issuances in Iran Capital Market-2021

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  • Tuesday, 31 August 2021 12:20

Total size of Sukuk issued through SPVs in Iran Capital market from 2011 to August 2021 is 877,019 billion IRR and total outstanding sukuk equals 716,889 billion IRR.

 

Iran Capital Market Central AMC reports: Iranian corporates have issued SPV involved sukuk in different structures; such as, Ijarah, Manfaah, ABS and Murabaha amounting to 182,839 billion IRR in the first 9 months of 2021 which is expected to rise considering the initial permits given by the Securities and Exchange Organization of Iran to 19 originators looking to raise funds through issuing SPV needed sukuk amounting to at least 100 trillion IRR.

 

The sukuk issued this year include a diverse range of underlying assets such as: sale contracts, drill rig, car parts, raw materials, future revenues from the gas fields and stocks.

Sukuk Issued through SPVs in Iran Capital Market Jan. to Aug. 2021

No. Originator Underlying Asset Amount in Million IRR Sukuk Structure Tenor (years) Return Payment Periods (months) Rate (% annually) Rating/Third Party Guarantee/Stocks Collateralization
1 Mehr Ayandegan Financial Development Group stocks 7,000,000 Ijarah 4 3 20 A+
2 The Social Security Investment Co. stocks 30,000,000 Ijarah 4 6 18 A+
3 Pars Oil Co. Raw Materials 1,000,000 Murabaha 4 3 18 Karafarin Bank
4 Taban Farda Petrochemical Group stocks 30,000,000 Ijarah 4 3 18 stocks
5 National Iranian Oil Co. Part of the profits of phase 12 of the South Pars gas field 50,000,000 Manfaah 4 6 18.5 Ahdaf Investment Co.
6 Dr. Abidi Pharmaceuticals Co. Drug manufacturing and packaging equipment 639,554 Ijarah 4 3 18 Middle East Bank
7 Iran Khodro Automaker Co. Materials and parts required for car production 10,000,000 Murabaha 4 3 18 Sepah Bank
8 Sabatamin Investment Co. stocks 10,000,000 Ijarah 4 6 18 A-
9 Pasargad Energy Development Co. Offshore drilling rig 13,500,000 Ijarah 4 12 18 Pasargad Bank
10 Kish Investment and Development Co. 123 sales contracts 1,000,000 ABS 2.8 3 18 Mellat Bank
11 Bahman Diesel Co. Car parts 5,000,000 Murabaha 4 3 18 stocks
12 Saipa Yadak Co. Auto parts and spare parts 1,500,000 Murabaha 4 3 18 stocks
13 Arghavan Gostar Ilam Petrochemical Co Electrical and mechanical equipment and facilities 1,200,000 Ijarah 5 6 18 stocks
14 Bahman Motor Co. Car parts 5,000,000 Murabaha 4 3 18 stocks
15 National Investment Company of Iran stocks 7,000,000 Ijarah 4 6 18 stocks
16 Tadbir Economic Development Group stocks 10,000,000 Ijarah 4 3 18 stocks

In Iran capital market, credit rating is not mandatory for issuing sukuk while in 2021, for the first time in the past 11 years some sukuk were issued based on their credit rating determined by local credit rating agencies.
According to guidelines on issuance of sukuk in Iran capital market, the sukuk originators are required to guarantee the payment of distribution amounts and principal through providing third person guarantee and/or corporate and sukuk credit rating and/or stocks collateralization.


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