Making remarks about IFB’s tremendous opportunities for international investors, head of IFB, Amir Hamooni, went on to say that IFB initiated to be slated for the time sanctions are lifted. “IFB’s third market, which is a platform for transaction of technologies is expected to boom in post-sanction era.”
According to the joint meetings with Securities and Exchange Organization, Organization for Investment Economic and Technical Assistance of Iran, IFB created a specialized task force and think tank to pinpoint legal framework pitfalls in capital market, said Hamooni. He further noted that another think tank that consists of investment banks, advisers and brokerages is expected to start working in the near future and coordinate regular meetings in a bid to reinvigorate market.
“In collaboration with aforementioned organizations, IFB prepared precise databases of lucrative investment opportunities via IFB, including projects have not been established yet, development plans and listed companies, said Hamooni.”
Investment Perspective at IFB
Hamooni cited that savvy investors can conducts their investments at IFB based on short or long term approaches in a bid to hedge. Speculating aimed at snatching capital gains in weekly basis, can be considered by bargain-hunter investors.
Corporate investment is another approach for well-versed investors. Mergers and acquisitions is an ample example, which is demanding by companies in Iran. “Action plans are ready and IFB’s third market is slated to help investors implement M&A.
IFB boosts transparency in foreign direct investment, Hamooni mentioned. IFB’s third market is a transparent platform for takeovers, mergers and acquisitions. “Foreign investors can also list the projects they are pondering as project or construction fund, including hypermarkets”.
Hypermarkets and commercial centers are among high-yielding-investment opportunities in Iran. A few projects have already lunched. However, in a bid to obtain liquidity, new projects can be listed at IFB.
“Many investors in neighboring countries have launched projects, including hypermarkets and commercial centers by listing them as construction funds,
Foreign institutional investors, including venture capitals and private equities can also acquire respective licenses from Securities and Exchange Organization, said Hamooni. “They can also be listed at the IFB and pursuing their projects, like M&A, startups etc.”.
Speaking about essential elements of attracting foreign investors, Hamooni went on to say that having companies’ financial statements in accordance with International Financial Reporting Standards is a must. “IFB’s advisory services can help both listed and unlisted companies to be well-prepared for investors’ flock to the country once sanctions are lifted.”
IP Market, Platform of Transaction of Technologies
Intellectual property market within IFB’s third market is a platform for transaction of technologies in post-sanction era, said Hamooni, adding, “required legal framework and instruction have been set to accelerate the process.”
Two types of investment can be done in this market. 1. Foreign investors that tend to invest on startups, idea, inventions and industrial plans, in which fresh inflows will be injected to local startups. 2. Domestic industrial premises that have enthusiasm to be equipped with state-of-the-art technologies, getting international licenses or brands can also meet their demands though IFB’s third market.
Sukuk Attraction in Iran
IFB has prudent policies pursing to expand sukuk market, with may investors expecting to line up to buy demanding Iranian companies’ dollar-dominated sukuk in post-sanction era, according Hamooni.
Moreover, semi-finished governmental projects plus new projects of private sector can fund themselves through project funds. Once evaluation is done, foreign investors can embark on participating in those funds, by bringing technology, machinery etc. Separation of ownership from management is the most important advantage of these funds, said Hamooni. “Founders and early-stage investors are entitled to manage the project.” He also noted that given those projects have attractive yield, and underlying risks dramatically mitigated, they can absorb required funds via capital market.
Hamooni concluded that optimism rose that once sanctions are lifted, banks rejoin SWIFT, Iran’s untapped market can unleash its potential.