$427m Crude Oil Salaf Securities on Iran Energy Exchange
EghtesadOnline: On government behalf, the Economy Ministry will offer standard parallel salaf securities for crude oil worth 50 trillion rials ($427 million) today (Tuesday). The Iran Energy Exchange will host the trade.
According to a notice published on the IRENEX website, the securities will be offered in two phases during the coming week.
Salaf securities worth 25 trillion rials will be offered in each phase with 13 and 17-month maturity.
The purpose for offering the securities is to attract a portion of the dollar liquidity created due to the volatility in greenback rates and channel it into production sectors, according to Financial Tribune.
Securities can also be traded in call option contract with annual yield set at 18%.
Standard parallel salaf is an Islamic contract similar to futures, with the difference being that the total price of the contract should be paid in advance.
Call options are agreements that give the buyer the right, but not the obligation, to buy a stock, bond, commodity or other instruments at a specific price and a specific time period.
Applicants can submit their orders on Tuesday on the Tehran Securities Exchange Technology Management Company website. Minimum purchase order is set at 1 trillion rials ($8.5 million).
The ministry is authorized to accept or reject all or part of the applications. All applicants whose requests are approved by the treasury deputy for financial supervision are obliged to submit documents by the end of business day on August 17.