Iran issues financial certificate to buy drilling rigs
Iran’s Bank Mellat is going to issue sukuk to finance the purchase of drilling rigs for Dana Petro Rig Kish Compnay, Ali Qasemi, a manager at the bank said.
Used in Iran and some other countries, the term sukuk is the name for financial certificates. Sukuk are defined by the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) as "securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets."
According to Qasemi, Bank Mellat is going to issue worth 650 billion rials ($21.6 million) of sukuk as lease bonds, SHANA news agency reported January 4.
He added the certificates will be issued on January 6.
Iran’s oil industry has suffered declining performance of equipment under international sanctions which prohibited the country from purchasing parts.
Decrepit equipment has increased the cost of production for Iran.
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