The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Iran: Securitization comes to Iran

Bankers are in the final stages of preparing Iran’s first ever securitization, according the head of a Tehran investment bank.

The Iranian Securities and Exchange Organization has issued a licence for three banks to issue a combined total of about $1.7 billion in mortgage-backed securities, the banker says.

Hossain Abdoh Tabrizi of Bank Eghtesad Novin says that about $500 million in residential mortgage-backed securities will be offered to Iranian investors, probably by the end of September – or at the latest by the end of November. Tabrizi runs the investment banking arm of Bank Eghtesad Novin, one of the country’s biggest private-sector banks. He says the remaining $1.3 billion will be offered by the end of the Iranian year in March 2009.

The mortgages are on the books of three banks: the country’s biggest bank, Bank Melli ($500 million); Bank Eghtesad Novin ($200 million); and Bank Maskan, the national housing bank ($1 billion). They are for houses and apartments and, according to Tabrizi, who was formerly secretary-general of the Tehran Stock Exchange, most are for less than one-third of the value of the collateral.

Restricted investor base

It will be a true-sale Islamic securitization. But the impossibility of obtaining a rating from the US-based agencies, among other hindrances, will mean the investor base will essentially be restricted to Iran.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.

By continuing to use & browse the site you agree to our Privacy Policy.
I agree