New wave of Corporate Sukuks on Iran Capital Market!
Market News
– Securities and Exchange Organization of Iran granted its principal consent on issuance of IRR 1,050 bn worth of Sukuk Ijara (on Iran Capital Market) for Alborz Railways Equipment Co. in order to buy 15 locomotives. These securities will be offering on Iran Fara Bourse and have a maturity of 5 years with Ijara (Rent) rate of 15%. The guarantor for new corporate Sukuk is the Railways of Islamic Republic of Iran and Maskan Investment Bank will act as the market maker.
– One of the biggest historic financing schemes in term of value is going to be for the Auto sector blue giant, Iran Khodro Co. IRR 7,000 bn (cUSD 151 mn) worth of Sukuk Murabaha with maturity of 4 years and coupon rate of 18%, to be paid quarterly, is going to issue on Iran Fara Bourse soon meeting the financial needs of the company to purchase parts and other necessaries.
– For an 11-month period ended 20 Jan 2018, the value of capital market assets held by foreign investors active in Iran’s Capital Market rose for 46%. International investors were mostly active on the buy side with 51% of trading value. 94 foreign investors placed purchase orders in this period, of which 14 were institutional investors and the rest (80) were individual traders.
– Today a new issue of Islamic Treasury Bills worth IRR 17,000 bn (cUSD 365.4 mn) publically offered on Iran Fara Bourse. TB211 securities with a maturity of 2 years, priced at IRR 750,000 which make the YTM and BEY at 17.5% and 16.24% respectively.
In the Market
The stock market experienced yet another day in red. Both major indices (TEDPIX for -0.15% and IFEX for -0.07%) settled below their flat lines.
Led by Mines & Metals Development (2.22%), the Iron Ore space settled with slim gains.
Holding IRR 2,936 bn in capital, Saba Nour Mineral & Industrial Development announced a 19% rise in its EPS for the FY ending 21 March 2018; the reasons behind this growth are: 1) the 37% and 19% rise in pellet sales volume and price; 2) the 8% and 6% growth in Concentrate sales volume and piece. As the result, the company’s previously stated net profit will increase from IRR 719,845 mn to IRR 850,819 mn; the ticker returned to the market in the green area, finishing 0.22% higher.
Iran’s mineral products export surpassed 53.33 mn ton and $7.58 bn over the first 10 months of the current year, which registers a 1% decline and 4.6% rise compared to the same period last year, respectively.
Elsewhere, the heavily weighted Metals industry went through balanced trades. An official in Esfahan Steel (-2.41%) announced that they have requested the Majlis Joint Commission to allocate 140 mn euro credit to produce rails for the National Railway Project. Some experts are estimating a 20-30% rise in steel prices in domestic markets as the result of the recent growth in the housing industry and construction.
Finally, the little rise in global oil prices also kept most symbols in the Oil Products group in the green territory.
Source:
2018, New wave of Corporate Sukuks on Iran Capital Market!, Munday, February 19, p.1,<https://agahgroup.com>
