News   /   Economy

Iran to hold two government bond auctions in June

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
The file photo shows a view to the headquarters of the Central Bank of Iran (CBI) in northern Tehran.

The Central Bank of Iran (CBI) is planning to hold government bond auctions on two occasions next month as it ramps up funding for an economy affected by the US sanctions as well as the COVID-19 pandemic.

The CBI said in a statement on Wednesday that it seeks to raise at least 100 trillion rials (nearly $580 million) from two rounds of bond auctions planned for June 2 and June 9, 2020.

It said banks and credit institutions would be allowed to participate in the auctions, adding that the central bank itself would be barred from purchasing the bonds in an initial offering based on the budget law for the current calendar year that ends in March.

The three-year bonds would mature in October and January 2024, said the CBI, adding that holders would enjoys a 15-percent monthly yield that would be reimbursed every six months.  

The top Iranian lender said other rounds of government bond auctions would take place on a weekly basis, adding that Iran’s ministry of finance, which is in charge of selling the bonds, would be free to remove bidders that have participated in the initial rounds.

The auctions come as the Iranian government seeks new sources of funding to finance a budget that has become largely free of oil revenues.

That comes as the country has been struggling with a series of American sanctions as well as a new coronavirus pandemic that has seriously affected the businesses.

The government has already raised hundreds of millions of dollars through the Sharia-compliant sukuk bonds.

It has also launched rounds of initial public offering (IPO) for shares of major state-run companies, a move which has caused a historic boom in the country’s stock markets.

Press TV’s website can also be accessed at the following alternate addresses:

Press TV News Roku