Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk
1
Faculty of Law and Political Science,University of Tehran, Enghelab Ave.,Tehran,Iran
2
Faculty of Law and Political Science,University of Tehran, Enghelab Ave.,
10.22050/pbr.2026.579974.1435
Abstract
This article examines how capital market instruments, particularly Islamic bonds (sukuk), can finance Iran’s petrochemical value chain through a hybrid Rial–foreign-currency model. The study is motivated by post-sanctions capital-market constraints in Iran, notably currency volatility and limited access to foreign funding, and by a gap in research on multi-currency Islamic financing solutions. It proposes a multi-layer financing structure combining Rial and foreign-currency Ijārah sukuk tranches and applies doctrinal legal analysis to the relevant Sharīʿah contracts and Iranian regulatory framework. To make the quantitative claims transparent, a stylised five-year quarterly model of an export-oriented methanol project is used. Under the illustrative assumptions, the annual weighted average cost of sukuk debt falls from 30.24% in an all-Rial structure to 20.07% in a 50/50 hybrid structure, while mean DSCR increases from 1.28x to 1.45x and the share of periods below 1.0x falls from 37.5% to 25.2%. The hybrid structure may broaden the addressable investor base, but actual implementation remains conditional on sanctions compliance, foreign-exchange approvals, transferability of export proceeds, and settlement arrangements.
Ghamami,M , Keshavarzi,G and Farahzadi,A . (2026). Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk. (e247511). Petroleum Business Review, (), e247511 doi: 10.22050/pbr.2026.579974.1435
MLA
Ghamami,M , , Keshavarzi,G , and Farahzadi,A . "Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk" .e247511 , Petroleum Business Review, , , 2026, e247511. doi: 10.22050/pbr.2026.579974.1435
HARVARD
Ghamami M, Keshavarzi G, Farahzadi A. (2026). 'Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk', Petroleum Business Review, (), e247511. doi: 10.22050/pbr.2026.579974.1435
CHICAGO
M Ghamami, G Keshavarzi and A Farahzadi, "Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk," Petroleum Business Review, (2026): e247511, doi: 10.22050/pbr.2026.579974.1435
VANCOUVER
Ghamami M, Keshavarzi G, Farahzadi A. Utilising Capital Market Instruments to Finance the Petrochemical Industry Value Chain: A Hybrid Rial–Foreign-Currency Bond Model with an Emphasis on Ijārah Sukuk. PBR. 2026;():e247511. doi: 10.22050/pbr.2026.579974.1435
