Financing Consulting

Financing consulting services offer customer financing through securities market and other methods. These services begin with the offering of necessary consultations about the characteristics and requirements of financing through the issue of securities. After the evaluation of development plan or enterprises’ new projects, Sepehr Investment Bank will provide applicant’s financing package and while performing necessary administrative actions and preparing required documents for the supervisory institution of securities market (Securities and Exchange Organization), it seeks permission for public offering. Based on customers’ needs and current requirements, Financing through the issue of different types of securities could be done by the following methods:

Issuing of Stock (capital raise)

One of the main methods of financing investment plans is using shareholders’ resources through capital raise. It is possible to raise required capital by issuing new stocks and offering them to the current shareholders. It is also possible by means of adding new shareholders and denying priority to current ones. In this process, shareholders try to attract new financial resources and avoid the current ones to be withdrawn. This way they will benefit form high-yield projects. Moreover, capital raise leads to the improvement of financial structure and increasing the borrowing capacity of the company. Capital raise is achieved using the following sources:
• The current demands of Shareholders
• Cash
• Retained Earnings
• Other Reserves
By applying current acts, financing through the issue of preferred stock is possible as well. However this method has not received much attention in Iran, this company is ready to provide necessary consulting for the applicants of these kind of securities with regard to the condition of companies and legal considerations.

Issuing of Debt Securities

Sometimes companies instead of using the resources of owners or partners tend to fulfill their needs by borrowing. If the enterprises have enough credibility and size, they can provide their required sources directly from financial markets and savers by issuing debt securities instead of using financial intermediaries such as banks. In the past decade, the issuing of musharakah certificates by companies, municipalities and state-owned companies is considered as one of the conventional means of financing through debt in Iran. With the development of the securities market, financing through the issue of securities based on capitals like Sukuk Ijara and Sukuk Murabahah has become possible. Different sorts of securities which can be issued are as follows:
• Musharakah Certificates
• General and Specific Certificates of Deposit
• Ijara Securities
• Murabaha Securities
• Istisna Securities

Convertible Debt Securities

Convertible debt securities are a combination of the two former methods. So when the securities expire, the owner has the right to become a shareholder of the company based on the number of his debt securities. This financing instrument allows its owners to benefit from daily interest during construction of the project and at the end, when the project is ready to be utilized, they become new shareholders. Sepehr Investment Bank has the honor of being the first in Iran capital market to have established the preliminary procedures for the issuing of these securities. The company is also determined to widely introduce this method of financing to enterprises.