Kian Debt Market Observer | Feb 16th – Feb 20th

Issuing asset-backed securities with value of IRR 2,000 bn

  • The first series of asset-backed securities based on accounts receivable as collateral in private sector was issued by Kerman Motors (a listed automaker), with value of IRR 2,000 bn, 16% coupon rate, 3 years maturity and quarterly payments. The issue is backed by future auto lease agreements. Based on trades on offering date, YTM of these papers is 16.9%.
  • Iranian parliament members have given permission to the government to issue Islamic treasury bills up to IRR 130,000 bn for the upcoming year 1398 and authorized governmental companies and municipalities to issue IRR 45,000 bn and IRR 80,000 bn worth of Sukuk respectively in the following year.
  • Moreover, the parliament approves that contractors of development projects can pay their tax to government through Islamic treasury bills.
  • The Central Bank of Iran permits banks to issue new certificate of deposits with 18% interest rate to replace the 20% certificate of deposits issued last year which were matured last week.
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