Kashan Municipality issues bonds to upgrade public transport fleet

Kashan Municipality has listed its participation bonds on the Tehran Stock Exchange to fund the modernization and expansion of its public transport fleet, specifically for the purchase and development of buses. The bonds, trading under the symbol ‘Kashan712’, have a total issuance volume of 350 billion Rials with a 23 percent annual interest rate paid quarterly over a four-year term.

On a national level, Iran's Ministry of Interior reported that 15 trillion Tomans sourced from participation bonds and other financial resources are being utilized to expand the country's public transport. This funding aims to add approximately 3,000 buses and between 8 to 10 train sets to the national fleet by the end of the year.

In 2024, 30 trillion Tomans in participation bonds were issued, followed by 36 trillion Tomans in 2025. Of these resources, 70 percent is allocated to railway development and 30 percent to bus procurement. The Ministry emphasized the importance of supporting domestic manufacturers, such as Iran Khodro Diesel and Saipa Diesel, during these procurement processes.