Iran to Allow Government Sukuk Holders to be Repaid with Crude Oil Exports

The Iranian Government-run Press TV, citing a Finance Ministry statement, has recently announced that the country will allow holders of Government Sukuk to be repaid in crude oil exports. If implemented, this would be the first time that oil would be used as a form of repayment of Sukuk issued in the local market.

The report stated that Sukuk holders with securities maturing prior to May 2021 would be entitled to apply to receive the equivalent value of their Sukuk bonds and profits due on them in the form of crude cargo.

Although further details of the implementation of the deal were not provided, media assumes that Sukuk holders will have access to future contract options.