EghtesadOnline: The government has given the go-ahead to Road Maintenance and Transportation Organization to issue 6 trillion rials ($136 million) of Islamic debt securities to finance its operations.
The Economic Council agreed to the measure on Monday and mandated the organization to use the funds raised for renovating the country’s roads and improve their security. The organization, affiliated to the Ministry of Roads and Urban Development, has been required to pay for the Musharakah sukuk’s issuance and their subsequent repurchase upon maturity using its own assets, Mehr News Agency reported. Musharakah bonds represent part-ownership of a particular project. Although they are similar to shares, they are subject to a limited duration of time and can be adjusted to have a higher ceiling of profit for sukuk holders, according to Financial Tribune.