Apr 13 2010 |
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€300m to Help Expand Petrochem Sector
The Export Development Bank of Iran (EDBI) and the National Petrochemical Company (NPC) have struck a deal that would enable the latter to procure its hard currency needs for more speedy implementation of developmental projects by receiving €300 million ($401 million).The amount will be raised through offering of currency Certificates of Deposit (CD) on international markets by the EDBI, the National Iranian Petrochemical News Agency said Thursday.
According to the report, the EDBI started selling the CDs to overseas banks on Thursday.
The move was projected in the last fiscal budget, which called for the issuance of $1billion's worth of currency participation notes to help meet the foreign currency needs of the NPC.
Speaking at the contract signing ceremony, NPC chief Abdolhossein Bayat said, "Through this collaboration, a new method for providing the currency needs of the NPC has been created...so that we can implement our projects more efficiently."
Noting the 40 percent share of the petrochemical industry in non-oil exports, estimated at $ 6.5 billion over the last Iranian year, he said, "Figures show that capital returns and added value in this sector are attractive for investors."
Bayat explained that, due to the global economic downturn, several foreign banks were unable to extend loans. However, "in collaboration with the EDBI, a new method for provision of currency finance is now being implemented."
EBDI chief Kurosh Parvizian said the petrochemical industry is one of the Iran's most important industries. "Fortunately limitations that have emerged in the global markets have led to closer collaboration between the NPC and the EBDI. Today we are witnessing the result of such cooperation."
"With the opening of this possibility for cooperation, the basis was created for the sale of more than €2 million and $1billion currency Certificates of Deposit," 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 €2billion worth of currency participation notes.
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