Iran to Sell EUR 2.7 Billion in Bonds for South Pars Gas Field

June 14, 2011

The first batch of oil industry’s foreign exchange bonds for current Iranian calendar year (started March 21), worth 2.7 billion euros, will be offered next week through branches of three domestic banks, managing director of the National Iranian Oil Company (NIOC), Mr. Qalebani announced on Tuesday.

He went on to say that this year bonds worth 8.7 billion euros will be issued, of which a big part is related to development of the shared South Pars gas field projects, Iran’s SHANA news agency reported.

The first batch of €3 billion bonds to fund South Pars projects was issued late last Iranian year (March 2011) and the second one worth €2.7 billion is going to be offered next week.

The profit of the bonds will be paid every six months and NIOC guarantee the bonds and its profit.

It’s worth mentioning that, holders of the bonds are capable to redeem the bonds at any time.

Stating that these tax-free public bonds (The 1000, 5000, 10.000, 50.000 and 100.000 euro notes) will carry no names, have 4-years maturity and are transferable, he said: “the bonds’ partial interest rates are max. 8%. Interest rates of 5.5%, 6%, 7% and 7.5% are imposed on the bonds redeemed in less than a year, 1-2 years, 2-3 years and 3-4 years respectively.

[mappress]

Source: NIGC, June 14, 2011;