18 thousand billion financing of some companies through the issuance of sukuk bonds – Tejaratnews
According to Tejarat News, Mohammad Hossein Sadrai, the CEO of Capital Market Central Asset Management Company, regarding the methods of financing through the capital market, stated: In conventional economies, financing from the capital market is done in two ways: capital financing (underwriting or initial public offering of companies’ shares) ) and debt-based financing (usually issuing debt securities) is defined.
He added: Central Capital Market Asset Management Company (Modam) is considered as the main issuer of debt securities in Iran’s capital market according to the regulations, and its duty is to consolidate the contracts of each financing plan, arrange the contracts to represent the bond holders, issue the bonds and follow up on the repayment of the principal and It is in charge of the papers.
The CEO of Capital Market Central Asset Management Company continued by stating that sukuk bonds are a powerful tool in corporate financing and stated: In the last two years, along with taking steps to explain the benefits of financing from the debt market, we are witnessing the private sector to It is increasingly leaning towards this market for its financing.
Benefits of buying sukuk bonds
Sadraei stated: One of the most important things that buyers of sukuk bonds pay attention to is the assurance of repayment of the principal and sub-sukuk. In this regard, the Securities and Exchange Organization has taken positive steps and created various conditions in order to assure the buyers of sukuk for repayment of the principal and installments by the founders, guaranteeing the principal and sub-sukuk by banks and credit financial institutions and guaranteeing the repayment of the principal. And the sukuk branch is considered as one of the two general methods of stock validation in this field.
He emphasized: During the last two years, the Securities and Exchange Organization has facilitated and accelerated the possibility of issuing sukuk by obtaining a credit rating, and we have seen successful examples of issuing sukuk based on the credit rating of the originator.
Financing through sukuk bonds
The CEO of the Capital Market Central Asset Management Company, in relation to the financing conditions of issuers through the debt market, stated: Financing through the debt market based on the issuance of sukuk is not only for listed issuers, there are many successful cases where non-listed and private equity companies They have also benefited from the debt market and secured the financial resources they need.
Sadraei said: In order to use sukuk for corporate financing, company managers must first select a consultant, then collect the documents for obtaining in-principle approval by the consultant or founder and send a request to the stock exchange organization to receive in-principle approval. In order to fulfill its obligations, the central asset management of the capital market carries out the financing process of consolidation steps around the contracts such as the underwriting party, the market operator, the guarantor party…
He emphasized: In the future, after obtaining the issuance permit by the Central Capital Market Asset Management Company, the bonds and funds collected will be deposited into the banker’s account by Modam after obtaining the withdrawal permit from Saba.
The CEO of the Central Capital Market Asset Management Company added: The volume of financing for companies in the last two years is in the range of 30 billion tomans to 6 thousand billion tomans, and the range of requests is expanding every day, and private sector companies in various industries are looking for financing. They are moving towards the debt market.
Benefits of financing through sukuk issuance
Regarding the benefits of financing through the issuance of sukuk, Sadraei stated: the most important difference between financing from the debt market and the banking system is in the payment of the principal of the debt, in the banking system, the principal of the debt is paid at the same time as the installment period, while in the financing based on On Sukuk, the principal financing amount is paid along with the last installment, which is a huge advantage.
He added: There is also the possibility of issuing sukuk with the guarantee method through stock endorsement or the method of obtaining a credit rating, which will greatly reduce the cost of financing compared to financing from the banking system.
In the end, the CEO of Capital Market Central Asset Management Company said about the financing of companies last year through sukuk bonds: In 1400, the total financing through sukuk was 21 thousand billion tomans for 26 financing plans of the company, while in the year In the past, with the efforts of the management of the supervision of the primary market of Saba and the relevant department and the unique and jihadist efforts of the Central Asset Management Company of the Capital Market (Modam), financing for 62 projects has been done through the issuance of sukuk, amounting to 67 thousand billion tomans, and the efforts of all the employees of the organization The stock exchange and asset management agreed that the volume of annual financing of the private sector through sukuk is at the level of 100 thousand billion tomans, and since the beginning of this year, about 18 thousand billion tomans have been financed for 30 private sector companies through the issuance of sukuk in the capital market. has taken.
Source: Senate