Fund Supply Services

Distribution of Participating Bonds

Participating bonds are signed and unsigned securities that are distributed according to a specific legislation or by authorization of the Central Bank, in order to meet part of the financial resources needed for the creation, completion and profitability of development, construction and services projects, including financial resources necessary to provide the needed raw materials for state production units, public corporations, municipalities and other public entities, institutions and non-governmental organizations and public benefit entities affiliated companies, public companies, private equity firms, and cooperatives, and are awarded to investors who wish to participate in the above-mentioned projects through public offer.

Leasing Bonds

One of the types of securities that can be purchased to finance is leasing bonds.

Usually enterprises that come across major financial problems, establish a second company, sell parts of their assets (such as property) nominally to this company and then lease the property from the same company under a lease-to-purchase contract. Now, the second company sells part of the property in form of shares in the stock exchange market. Its benefit for the buyer is that he/she shares part of the rent and after the end of the rental period, returns its share while keeps the principal. In this way, he/she earns a profit in addition to their initial investment (in the form of rent).

Murabaha Bonds

Murabaha is a sale contract by which the seller informs the customer of the finished price of a product, including the purchase price, transportation costs, maintenance and other related costs. Then by adding an amount or a percentage as profit, they sell it to the customer.

Murabaha purchasing can be made in cash or credit while its interest rate on credit is usually higher. It is for some time now that Muslim scholars have embarked upon introducing certain security bonds named Murabaha Bonds in order to fill the vacuum caused by removal of bonds through using features of Murabaha purchasing that can be a good complement to the money market and Islamic capital in order to provide financing and monetary policy tools. Murabaha bonds can be designed in different forms, the most important of which are: Murabaha financing bonds, Murabaha bonds to provide liquidity, Murabaha securities to finance the establishment of trade firms, conversion of Murabaha mortgage securities to bonds to meet the demands of banks and leasing companies.

General and Specific Certificates of Deposit

In order to fill the liquidity gap in the bank and/or to finance specific projects, it would be possible to issue general and specific certificates of deposit in collaboration with the Central Bank. Given the shortage of liquidity in the bank, it could be an appropriate product at Ayandeh Bank.

Land and Building Fund

In order to provide financing for construction projects, an instrument that is used by contractors is Land and Building Fund in order to provide individuals, who are unable to purchase a housing unit, with the advantages of the market. Therefore, the establishment of such funds could be very much attractive to both people and contractors.

Project Fund

Project fund is introduced for a specific business plan while investors provide the initial money for the project. After obtaining the necessary permits and registering the fund at the Stock Exchange Market and the Company Registration Office, and when it is determined that the implementation of the project will be without risk, the possibility would be provided for the created project fund units to be offered in the OTC market. This method of financing has many advantages that can enhance their use in financing projects.

Unlike participating bonds, project funds result in the sharing of the project assets. Participating in the assets provides the opportunity that in terms of inflation, the increase in the value of assets leads in coverage of inflation and alongside this, the investor will also benefit from the gains resulting from the progress of the project.

Project: One of the methods of financing of projects is that the initial capital for starting the project is absorbed and provided by individuals as share-holders. In this way, various industries in the country would be developed and the people would also be somehow involved in financing the projects.

This method of financing is, in some regards, similar to financing through participating bonds. But there are also some differences between the two, including:

In stock project, stocks are distributed by names, thus the development of a secondary market for the purchase and sale of such shares is not simple. But in the case of participating bonds, it is easily possible to transfer them to others.

The profits of participating bonds are paid to the owners on given intervals, but the project stakeholders could enjoy the benefits of their investment only at the time of completion of the project.