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Issuance of parallel auto bonds from today – Tejaratnews


According to Tejarat News, according to the announcement of the stock exchange, the supply of Vant Kara standard parallel promissory notes will start today.

It is supposed to be offered on the commodity exchange today, Sunday, with a two-year maturity and a value of 20,000 billion Rials.

A promissory note is a contract between a buyer and a seller, in which the seller pre-sells an asset (goods) and receives the amount from the buyer, and the goods must be delivered to the buyer on a certain deadline. The attractive part of these bonds is the lower initial price of the product for pre-sale.

When is the secondary trading of parallel bonds?

Secondary trading of Vant Kara’s parallel bonds will be launched one day after the end of the initial offering.

Don’t worry about liquidity

The said bonds have a market operator with obligations of minimum cumulative order with a quote range of two percent equal to one percent of the total volume of bonds and the commitment limit of daily transactions up to five percent of the total volume of bonds, and therefore investors will not have to worry about the liquidity of the bonds.

Is physical delivery possible?

If the buyer of the bonds wishes, the physical delivery of the bonds is possible, which means the delivery of a 2000 single-cabin van at the due date in accordance with the specifications of the contract and current regulations.

What is the bond yield?

In general, the yield of these bonds can be explained in two situations at maturity:

If the bond holders exercise their selling option at the price (136% times the base price in the initial offering), these bonds will have a two-year yield of at least 36% for investors.
If Bahman Motor Company exercises its purchase option at the price (144% multiplied by the base price in the initial offering), the two-year bond yield at maturity will be a maximum of 44%.

Necessary conditions for delivery of goods

Subject to the declaration of readiness for delivery by the holders of standard parallel forward contracts, it will be up to the end of the trading hours, 10 calendar days before the maturity of the bonds.

The minimum number of contracts for physical delivery is 250,000 contracts equivalent to 250 vans with 2000 single cabs. The delivery of the goods will be at the door of the factory on the due date. All conditions of physical delivery of goods in accordance with the conditions of sale of goods in the Iran Commodity Exchange govern the physical delivery of this contract.
Damage caused by non-delivery of goods

In case the supplier enters the delivery process and fails to deliver on time, the company is obligated to pay a fine according to the instructions for clearing and clearing transactions of the Iran Commodity Exchange.

The end of car price fluctuations, with parallel bonds

Mohammad Khanzadeh, a capital market expert, said in an interview with Basna regarding the benefits of the issuance of standard automobile promissory notes on the production process of this industry: Auto parallel promissory notes are one of the best financing tools for car manufacturers; Because producers can spend the funds obtained from the issuance of bonds without restrictions on things such as investing in the company’s infrastructure projects, carrying out industrial projects, importing parts and raw materials, working capital, paying overdue debts and other things.

He added: In partnership bonds, the bond issuer must use the resulting resources in the pre-agreed project.

This capital market expert emphasized: unlike participation bonds, the resources obtained from standard parallel bonds do not have a periodic cost for the car manufacturer, because the issuer of the participation bonds is required to pay interest on account during the period and at the end of the participation period, the payment must be made with accurate calculation. to settle the difference in the profit or loss of the plan, but in the auto maker’s bonds, they did not pay any interest during the period, and only at the end of the period, with special settlement mechanisms, they are required to settle in cash or sell certain goods to investors.

Khanzadeh said: In addition to providing financing, standard parallel promissory notes also have the ability to cover risk, in such a way that an investor or an institution that needs a car and on the other hand is concerned about the increase or shortage of cars in the future, can purchase it in advance. Cover yourself against various risks such as price fluctuations.

In response to the question whether these bonds can be a supplement to the discussion of the car supply in the stock market or not? He stated: It seems that the issuance of parallel bonds is a type of car supply in the commodity exchange, and over time, due to its significant efficiency, it can resolve the disputes over this issue.

In the end, this capital market expert said: One of the mistakes of decision-making in our country is the lack of development of the implementation process, because any plan is doomed to failure or success at a high cost if the path is not followed completely. It should be done, and auto title deeds are a good starting point for it.

Source: The stock market wakes up

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