Central Securities Depository Of IRAN

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Settlement of Islamic treasury bills valued at 12.2 billion euros over last 8 month

Settlement of Islamic treasury bills valued at 12.2 billion euros over last 8 month

Iran General Treasury announced that the government has paid 580 thousand billion IR Rials (some 12.2 billion Euros) from 21 March 2021 to 22 November 2021 settling the Islamic Treasury Bills.

According to the official announcement, the government paid off some 580 thousand and 201 billion IR Rials (12.265 billion Euros) to settle the principal and interests of the issued Islamic Treasury Bills having raised 500 thousand and 771 billion Rials (10,586 million Euros). 

Islamic Treasury Bills are securities underwritten and given to non-governmental contractors in lieu of overdue payments. Contractors can either sell them to a third party on the secondary market of the Iran Fara Bourse or wait until the maturity date.

Conventional treasury bills are usually sold to buyers by the governments at a discount from its face value and government debt is paid from the proceeds. However, due to Sharia-compliance issues, the government of the Islamic Republic of Iran needs to issue these securities and hands them over directly to the creditors. If the holder of the Islamic treasury bills needs cash, they sell these securities in the Iran Fara Bourse new financial instruments market.

Iran General Treasury will transfer the face value of Islamic treasury bills to the bank at their maturity time and CSDI will distribute it to the ultimate beneficial owners’ bank accounts available on its database.

CSDI also settles the bills traded on the Fara Bourse secondary market as the clearinghouse of the Iranian capital market. The settlement cycle for the financial instrument of Islamic Treasury Bill is T+1 (Settlement is executed on one working day after the trade). 

Item Paid Amount (Billion IR Rials) Equivalent in Euros (Billion Euros)
Principal 405788 8.578
Interest  176226 3.725
Total 582014 12.303

Release Date: 2021-11-28