Side Market: Carmakers' Way Of Salvation
It has been a long time since Iran Khodro and Saipa Group have tried to provide Murabaha Bonds and only Iran Khodro succeeded. How much does these bonds, which offered by the car companies affect the sales of the two companies?
Khodrocar – Iran Khodro started the Underwriting contract of murabaha bonds in order to finance the purchase of raw materials. According to the approval of Tehran Stock Exchange, Iran Khodro’s sukuk murabaha bonds, which worth 7 trillion IRRs with an interest rate of 18 percent is in order to supply a financial part in order to buy raw materials. This is the most expensive bond in the history of automotive industry.
Last year, Saipa Group wanted to provide and sell sukuk murabaha bonds, which worth 5 trillion IRRs, but it did not succeeded yet.
Some experts believe that creation of second market by banks and securities provides the opportunity for the companies to supply a part of their fund, but the other aspects of economic activities should not be forgiven. Yesterday, Iran Khodro confirmed that they entered the stock exchange.
Now the question is that what are the effects of publishing of these bonds as the second market on the development automotive industry?
Farbod Zaveh told Khodrocar regarding the issue: "The positive relationships of banks with automakers are common in global markets. When the automotive market is not well supplied, they will force to pursue financing through various ways. Now, the situation is available for the carmakers to enter the stock exchanges and it seems that Iran Khodro will make the most of it.”
He states: "Providing murabaha bonds or creating a market in order to supply funds for carmakers like Iran Khodro means that this company were not able to fully supply its funds via economical activities.”
Zaveh emphasizes: "However, the people trust government bond with 20 percent than Iran Khodro’s bonds with 18 percent, but it is expected that a four year dead line will make the people to welcome these bonds.”
The automotive industry expert sais: "Financing methods in Iran are limited. Hence, banks must either protect the manufacturers or take initiatives such as entering the stock exchange.”
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh
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