‘Govt. can take advantage of capital market for financing development projects’

July 15, 2020 - 11:32

TEHRAN- The head of Iran’s Securities and Exchange Organization (SEO) said that the government can take advantage of capital market for financing the development projects, IRNA reported.

Making the remarks in a meeting with the members of the parliament’s Economic Committee on Tuesday, Hassan Qalibaf-Asl underlined that the present status of the capital market is an opportunity for the national economy.

Last month, the transport and urban development minister announced that his ministry’s planning to offer 12 freeway and railway projects to be financed through the country’s capital market.

Mohammad Eslami made the announcement in a meeting with the members of the country’s road-building companies association.

As announced in May by the deputy transport minister for resource planning and management, Transport and Urban Development Ministry planned to offer 14 infrastructure projects to be financed through the country’s capital market.

“Studies have been concluded for 14 infrastructure projects for entering the capital market, and investment companies are assessing various methods and models of offering these projects in the stock market,” Amir-Mahmoud Ghaffari stated.

According to Ghaffari, seven railway projects and seven freeway projects would be offered in the capital market, and the transport ministry was considering which of those projects should be the priority.

“This is the Transport and Urban Development Ministry’s first experience in this area and we are designing a model for its implementation”, the official explained.

He further noted that the ministry is holding several meetings with the Securities and Exchange Organization to plan the model and approach for those projects to enter the market, adding that investment companies were developing a proposal for the stock market.

Referring to the schedule for the offerings, the deputy minister said, "We are trying to offer the projects in the capital market in the first half of the current [Iranian calendar] year (March 20-September 21).”

“At the first stage, two projects will be listed,” he added.

MA/MA

Photo: Securities and Exchange Organization Head Hassan Qalibaf-Asl

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