National Petrochemical Company to receive €300 mln in a deal with Export Development Bank of Iran

13-Apr-10

A deal has been inked between the Export Development Bank of Iran (EDBI) and the National Petrochemical Company (NPC). NPC is to receive €300 mln worth of investment to be raised through the offering of currency Certificates of Deposit (CD) on international markets by the EDBI. According to a report, EDBI has started selling the CDs to banks abroad on Thursday. This offer was authorized by the last Iranian year's (ending on March 20) budget, which called for the issuance of US$1 billion's worth of currency participation notes to satisfy the currency requirements of the NPC. Under the budget for the current Iranian year, the NPC is permitted to sell up to €2 bln worth of currency participation notes. A basis has been created for the sale of more than €2 mln and US$1 bln currency participation notes. The notes are being offered in 1, 2 and 3-year maturities, with interest rates of 5%, 6.2$ and 7.5% respectively.