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part of a ‘W-shape’ rebound in the next few months as more cheap shares enter the market. Iranian Deputy Industry Minister Saeed Zarandi informed media of the 250 companies in the queue for a potential initial public offering (IPO).
The banking system, he said, had announced that IRR3.25qn ($77.4bn at the free market rate) would be available in financing for companies during the current Persian year (ends March 20, 2021) but the corporate sector would probably need towards double that, meaning raising money on the bourse was an appealing option for many companies, he noted.
In early June, Zarandi said that 100 industrial firms were expected to list on the TSE by the end of the calendar year, but more are now apparently looking to get a piece of the action.
Iran - Financial market as of Jan 2020 as of Jun 2019 as of Jun 2018 as of Dec 2017
Equity market index: Tehran Stock Exchange (TEDPIX)
427,139 248,533 111,528.2 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 23.9% (2017) 25.7% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange 327.20 (Dec 224.85 100.66 105.98 (TSE) (USD bn) 2019)
PE ratio: TSE 8.60 8.41 6.76 7.01 Source: CEIC
8.4 Fixed income
8.4.1 Fixed income - bond news
Iran offers to repay government sukuk bonds with oil futures
Iran has offered to repay holders of government sukuk bonds with crude oil cargoes, Press TV reported, citing a finance ministry announcement. The move is the latest bid by the Iranian government to offer the public access to the country’s vast oil supplies, while if successful it will reduce the burden on state coffers of sukuk due to mature over the next few years.
The holders of sukuk bonds which are set to mature in May 2021 can apply to liquidate their bonds in exchange for oil cargoes, state television also reported. It is currently unclear how the transfer would work, but sukuk bondholders could be given futures contracts related to the later sale price of oil.
It is also unclear if people will choose this option considering that oil prices have this year tumbled on international markets.
42 IRAN Country Report November 2020 www.intellinews.com
