Page 39 - IRANRptDec20
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Renewed commitments from the Iranian government to privatisation plans helped attract more retail investors to the TSE from early this year. However, the story proved overcooked.
In recent weeks, ministers have attempted to reassure investors that there will be a wave of privatisations that will make local stock market investments good longer-term bets.
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.
39 IRAN Country Report December 2020 www.intellinews.com
