Issuance of Sukuk Securities Authorized to Fund Oil, Gas Projects

The First Vice President, Eshaq Jahangiri, signed off on the executive bylaws for the issuance of Islamic compliant securities (Sukuk) in the calendar year of 1399 (which began on March 20) to be enforced by the relevant organs.

With the approval of the Executive Bylaws of issuance of the securities in the year, state-run companies are authorized to raise up to IRR 65,000 billion to implement projects with technical, economic, financial and environmental justification which have been approved by their economic councils, by guaranteeing repayment of the main investments and their profits on their own, in compliance with the relevant laws and regulations.

Accordingly, in order to finance oil and gas projects if the Iranian Ministry of Petroleum, with priority given to joint fields and the infrastructure and development projects of the Ministry of Industry, Mines and Trade and the Ministry of Energy, these ministries are allowed to operate via their affiliated companies and with the approval of their Economic Councils and issue Islamic compliant bonds (either in Rials or hard currency) up to IRR 35,000 billion and guarantee repayment of the main capital and profits of these bonds by the mentioned companies from the increased production of the same fields (for projects of the Ministry of Petroleum) and project revenues (for projects of the Ministry of Industry, Mines and Trade And the Ministry of Energy).

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