Rise of Sukuk Issuance by 94% in H1 2020-Iran Capital Market

  • 2409 Hits
  • Monday, 27 July 2020 15:00

SPV involved sukuk issuances volume in Iran Capital Market have risen by 94% to 135,800 billion IRR in h1 2020 comparing to 69,820 billion IRR in same period previous year.
Iran Capital Market Central AMC reports: the government and corporates have issued SPV involved sukuk in different structures; such as, Manfaah, Ijarah and Murabaha amounting to 135,800 billion IRR in first half of 2020. These sukuk are backed by assets, including: tax revenues, stocks, machinery, materials and equipment.

issued sukuk in iran-2020
Total outstanding of SPV involved sukuk in Iran Capital Market to the end of June 2020 worth 560 trillion IRR.
The Securities and Exchange Organization has given go-ahead to 14 corporates to issue various kinds of sukuk totaling 168,500 billion IRR this year.
According to the Law for Development of New Financial Instruments and Institutions enacted in 2009, the sukuk originators need bank guarantee and/or stock collateralization and/or credit rating in order to issue sukuk; but almost all SPV involved sukuk were issued using a bank guarantee. For the first time in the past 11 years the SEO has given an initial permit to a corporate to issue sukuk based on its credit rating determined by a local CRA rather than a banck guarantee.