The CEO of Tamadon Investment Bank stated that the trend of financing economic enterprises through the capital market in 2023, compared to 2022, indicates a growing reliance on this market for funding.
According to Iran’s Capital Market News Agency (Sena), Ali Bigzadeh, CEO of Tamadon Investment Bank, highlighted the trend of financing through the capital market. He noted that Iran’s economy is predominantly bank-centric, with financing traditionally reliant on banks. However, over the past decade, financing through the capital market, particularly via debt instruments, has shown significant growth. In the first six months of this year, over 32 trillion IRR in financing has been facilitated through the capital market for companies and municipalities.
Bigzadeh further explained that, according to the Sixth Development Plan, the banking system is designated for short-term working capital financing, while the capital market is intended for long-term financing. The capital market has aligned with this framework, as evidenced by the upward trend in capital increases and the issuance of Sukuk bonds for financing purposes.
Regarding Tamadon Investment Bank’s performance in supporting the country’s economy, Bigzadeh stated that from the beginning of 2023 until October 15, the company facilitated over 122 trillion IRR in financing through the issuance of various debt instruments, capturing 38% of the market share for corporate and municipal bonds.
He added that, out of a total of 322,633 billion IRR in debt securities issued in the country—comprising 232,133 billion IRR in corporate bonds and 90,500 billion IRR in municipal bonds—Tamadon Investment Bank accounted for 122,050 billion IRR of the financing facilitated in these sectors through the capital market.
Bigzadeh also noted that, during the same period, Tamadon Investment Bank managed the financing of five major municipalities in the country, totaling 81,500 billion IRR, representing 90% of the municipal financing market share for the year.
In conclusion, Bigzadeh emphasized the appeal of issuing Murabaha Sukuk in the capital market for private sector financing. Since the beginning of the year, Tamadon Investment Bank has facilitated the financing of over 10 economic enterprises through the issuance of more than 40 trillion IRR in various corporate debt instruments, securing approximately 18% of the market share for corporate debt securities.
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