Market and product

The Export Development Bank of Iran (EDBI) and the National Petrochemical Company (NPC) have struck a deal, which would see the latter receiving EUR 300 million (USD 401 million)`s worth of investment.

The amount will be raised through the offering of currency Certificates of Deposit (CD) on international markets by the EDBI, reported the National Iranian Petrochemical News Agency on Thursday.

According to the report, the EDBI has started selling the CDs to banks abroad on Thursday morning.

This offer was authorized by last Iranian year`s (ending on March 20) budget, which called for the issuance of USD 1 billion`s worth of currency participation notes to satisfy the currency requirements of the NPC.

Speaking at the formal contract signing ceremony, the NPC`s Managing Director Abdolhossein Bayat said, "Through this collaboration, a new method for provision of currencies needed for the NPC has been provided…so that we could implement more speedily the plans of the petrochemical industry."

Noting the 40 percent share of the petrochemical industry in the non-petroleum exports, worth USD 6.5 billion over the last Iranian year, he said, "figures show that the returns on capital and added value in this industry is very desirable for investors."

Bayat explained that, due to the global financial crisis, a number of foreign banks were unable to provide loans. However, "in collaboration with the EDBI, a new method for provision of currency finance is being implemented today, so that all the world should know that Iran`s petrochemical industry continues in its rapid progress," he said.

For his part, the EBDI`s Managing Director Kurosh Parvizian said that the petrochemical industry is one of the Iran`s most important industries and said, "Fortunately, the limitations that have come about in the global markets, have led to satisfactory collaboration between the NPC and the EBDI, and today we are witnessing the result of this cooperation."

"With the opening of this possibility for cooperation, the basis was created for the sale of more than EUR 2 million and USD 1 billion currency participation notes," he explained.

The notes are being offered in 1, 2 and 3-year maturities, with interest rates of 5, 6.2 and 7.5 percent respectively. Under the budget for the current Iranian year [starting March 21], the NPC is permitted to sell up to EUR 2 billion worth of currency participation notes.

(Source: http://www.presstv.ir/)