Iran’s Ministry of Finance has issued IR5,000bn ($165mn at the official rate of $1=IR30,260) worth of Ijara Sukuk, or lease-based Islamic bonds, arranged by Novin Investment Bank, a private sector Iranian firm. This is the government’s first attempt in public debt securities to be issued in the form of this type of sukuk, listed over the counter (OCT) on Iran’s Fara Bourse.

The government will use the proceeds from the sukuk issue to settle debts owed to Ayandesaz Pension...