435 Trillion Rials in Bonds Proposed in 2019-20 Budget

Provisions of Note 5 of next year’s budget give details about Islamic bonds the government intends to issue in the next fiscal year that begins in March 2019.

Financial Tribune- As per the proposal, public sector companies will issue 45 trillion rials ($428 million) in Islamic bonds in rials for projects that are technically, economically, financially, and environmentally viable.
The decision to fund such ventures must be approved by the government's Economic Council. The issuer must guarantee reimbursement of the principal amount plus interest.
While yields on treasury bills are variable for different maturities, currently their average yields are around 20%.

Publish Date: Dec 30, 2018