The cost of financing in the market has increased; the government has changed the competitive environment by issuing expensive bonds.

The CEO of Omid Capital Investment Company said: "This year, unlike previous years, the government has been issuing debt securities since the beginning of the year, and these securities have been issued at higher rates than the previous year."

The cost of financing in the market has increased; the government has changed the competitive environment by issuing expensive bonds.

According to the Shahr-e-Bourse, Mohsen Mousavi, CEO of Omid Capital Investment Company, stated in the panel “How to Secure Successful Financing with Minimal Cost from the Capital Market” referring to the increasing trend of risk-free rates in the market: This year, unlike previous years, the government has been issuing debt securities since the beginning of the year, and these securities have been issued at higher rates than the previous year.

He added: The rate of issuance of government bonds started at about 35 percent and then increased to 42 to 43 percent; an issue that indicates the government’s lack of cash resources and an attempt to compensate for obligations by selling bonds.

Mousavi continued: This trend has ultimately led to an increase in the costs of implementing projects and an increase in the cost of financing in the economy.

The CEO of Omid Capital Investment Company, referring to inflation of more than 50 percent in the country, emphasized: Financing for the private sector becomes more difficult in such conditions; but choosing the right time to issue bonds is one of the important factors for success.

According to him, companies that took steps to secure financing at the beginning of the year are in a much better position than in the middle of the year. Some projects also stopped issuing bonds due to unfavorable market conditions later in the year.

The CEO of Omid Capital Investment Company also pointed out the behavior of companies in managing foreign exchange resources and said: Due to currency fluctuations and the need to manage dollar costs, many companies prefer to spend the resources obtained on current foreign exchange costs to prevent increased risk.

He emphasized: Companies should not focus only on debt instruments and it is necessary to use a combination of financial instruments.

The CEO of Omid Capital Investment Company added: In some cases, companies must agree to transfer part of their shares; This is part of managing the cost of financing and can reduce debt pressure.

Mousavi considered the role of financial technologies important and stated: With the help of modern fintech tools, the process of issuing bonds can be reduced to one to two months, however, the full implementation of these models has not yet been finalized by the supervisory institutions and the processes are still time-consuming.