According to Baaqtesad, quoting the Central Bank, following the announcement on Tuesday, December 23, 2016, regarding the holding of the government bond auction, during the 31st stage of this auction, the three banks placed their orders worth 8.1 thousand billion. Rials were registered in the interbank market system.
The Ministry of Economic Affairs and Finance, while accepting all requests, sold 1.5 thousand billion Rials worth of 55 bonds with a rate of return until maturity of 21.5%, 500 billion Rials of bonds 58 with a rate of return until maturity of 20.5%, 500 billion Rials Arad 60 bonds agreed with a yield to maturity rate of 21.5 percent and 5.6 trillion rials. Arad 64 bonds agreed with a yield to maturity rate of 20.5 percent.
Transactions related to the sale of these bonds to the winning financial institutions were registered on Tuesday, December 30, 2016 by the Central Bank brokerage in the stock exchange trading system.
Also during the last week, 3.6 thousand billion Rials of 55 bonds, 700 billion Rials of 58 bonds and 4 thousand billion Rials of 60 bonds were purchased through gradual supply.
Therefore, in total, 4,000 billion rials of government bonds were purchased by real and legal investors during the week ending December 30, 2016.
Holding an auction of government debt securities (December 7, 2016)
In order to gradually offer securities on a weekly basis, the Central Bank Brokerage will implement the thirty-second stage of the government bond auction for sale to banks, non-bank credit institutions, investment funds, insurance companies and capital raising companies on Tuesday, December 7, 2016.
The bonds offered in this auction are general Murabaha, with coupons and with a frequency of six-month interest payments (payment of coupons twice a year) and are as follows:
Banks and non-bank credit institutions applying for participation in this auction can send their orders until 12:00 on Sunday, December 5, 2016 only through the interbank market system.
Investment funds, insurance companies and financing companies applying for participation in this auction can also register their orders until 12:00 on Sunday, December 5, 2016 through the quotation system of Tehran Stock Exchange Technology Management Company. Transactions related to this auction will be done on Tuesday, January 7, 2017.
All financial institutions applying to participate in this auction can send their orders in each symbol separately. It is worth mentioning that the minimum order volume in each of the mentioned symbols is 500,000 sheets. Financial institutions participating in the auction are also advised to include diversification into the financial asset portfolio in fashion ordering.
It is important to note that the Ministry of Economic Affairs and Finance is not required to accept all bids received or sell all bids offered at auction.
The Central Bank sends the received orders to the Ministry of Economic Affairs and Finance for decision-making, and the Ministry determines the winning orders by specifying the minimum price accepted in the auction mechanism. Finally, the bonds are offered to all winners at the same price.
Also, according to the 4th paragraph of “K” of Note 5 of the Budget Law of 1399, the Central Bank is only allowed to buy and sell government Islamic financial securities in the secondary securities market. Therefore, within the framework of the law, the central bank is not allowed to buy Islamic financial securities in the primary market and can not purchase government bonds in the auction process for the purpose of government financing.
Also, the central bank brokerage provides the trading infrastructure and organizes the auction of bond sales to banks and non-bank credit institutions that are members of the interbank market and has no obligation to the volume and price of securities sold in the primary market.