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Round Table: Financial sector solutions for Europe – Iran trade and investment
March 17, 2018

The electricity market exchange is now brighter with MAPNA’s electricity

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“Once again, Iran Power Plant Projects Management Company (MAPNA) intends to finance and provide working capital for its combined cycle projects through the capital market,” announced Amin Investment Bank’s deputy head of market operations.

“Once again, Iran Power Plant Projects Management Company (MAPNA) intends to finance and provide working capital for its combined cycle projects through the capital market,” Esmaeil Binaei Amin Investment Bank’s deputy head of market operations announced.

In a conversation with Bourse24, he added: “The Company continues its successful experiences in the field of financing in the capital market and plans to release 4,000 billion Rials of parallel pre-buy securities on the standard electricity market exchange in cooperation with Amin Investment Bank as the contract underwriter and market maker.”

According to him, the securities will be released soon in the coming days and it will be one of the largest financing projects in the electricity market exchange through the issuing of pre-buy securities. One of the most important features of this supply is the presence of Amin Investment Bank as the market maker during the effective period of the securities to create the required level of liquidity for investors with an interest rate of 17.5% per year as calculated daily.

As an authoritative figure in Amin Investment Bank, Esmaeil Binaei explained: “These securities are registered to the name of the buyers and are tax-free. Another feature is the possibility of subsequent selling and purchasing of the securities, adding to the attractiveness of the offer. In this way, if the base asset price of the subject of securities (electrical package) falls, investors can sell them with an 18% interest rate to ensure the return on investment. Also, in the event of an increase in electricity prices, MAPNA Company can purchase the securities at a 19% interest rate to avoid an increase in the cost of financing and ensure an 18-19% return on investment rate due for investors.”

“Considering the interest rates offered on securities available in the market as well as interest rates in the banking network, it is expected that these securities will be received with enthusiasm by investors and will face overcrowded lines that exceed the purchasing capacity, being sold out in the shortest possible time,” he commented in the end.

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