Iran’s Bank following new funding method
Tehran, Iran, October 4
By Mehdi Sepahvand -- Trend:
The Iranian Bank Maskan (bank for housing) has undertaken a new method of financing projects to help urban development and land added value growth.
Addressing the Iran Transportation and Urban Development Summit, Bank Maskan CEO Mohammad Hashem Botshekan said the bank is working on an asset management method different from the structured financing in which each project has its specific funding prescription, Trend correspondent reported from Tehran October 4.
He said the new method is applicable to newly developing towns and special zones.
In such towns there are some needs, that is, there are infrastructure and superstructure such as hospitals, police stations, mosques, schools, and roads.
"There are also underperforming assets, making money out of which is difficult. Examples are land with housing and business function," he said.
Botshekan said that in the new method, the management and funding is carried out through some agent by issuing securities, construction bonds, or through syndicate or non-syndicate bank facilities.
He concluded that the benefits of this method are that the infrastructure and superstructure sources are made available, after that the land gains some added value, and the settlement of households will also follow.