NPC in talks with 2 German firms to open 12b Euro credit line

EghtesadOnline: Director of the Investment Department at National Iranian Petrochemical Company (NPC) Hossein Alimorad says his company is busy in talks with two German companies to open credit lines of 12 billion euros.

News ID: ۷۷۱۳۰۴

14 November 2016

Alimorad, briefing a press conference on petrochemical investment and financing, said the investment and capital attraction and financing projects will take time. 'In the post-JCPOA era, the policy of Iran's National Petrochemical Company is using the opportunity available to encourage foreign investors to invest in the petrochemical industry, thus attaining the world's latest technology.'
To this end, strengthening Iranian investors through establishing partnership company structures will be among priorities of the NPC, he added.
Alimorad referred to a guideline issued by Minister of Petroleum Bijan Zanganeh regarding foreign investment and said all Iranian and foreign investment bids should be examined by the NPC and after their confirmation, the result should be sent to Ministry of Petroleum for issuance of early permit for investment, IRNA reported.
Elsewhere in his remarks, he referred to an agreement, signed with the Japanese for a credit line of 10 billion euros, and said despite lapse of six months since inking of the agreement, the two sides' conditions have not become much similar to open the line.
He noted that concurrently, other credit lines will be issued by the Central Bank of Iran and Ministry of Economy and Finance with two or three European states, China and Korea and any of them opened, will be the Iranian party's priority.
Alimorad also referred to a credit line of 320 million euro by Japan in usance form for Persian Gulf Holding company and said for the time being, talks are underway with a Japanese company for better conditions to open a credit line of 640 million euros.
He also outlined a joint meeting of Iran and Germany at Iranian Embassy in Berlin to attract investment, have partnership of companies, banks and insurance institutes and said in the meeting managing directors and senior directors of petrochemical companies and holdings active in Iranian petrochemical industry introduced their major projects.
The official said the meeting aimed to find a suitable mechanism for using Germans' credit lines. 'The project the German banks considered as the speedy way consisted financing one or two projects relating to NPC regarding its being state-owned, so then the private sector projects will be financed.'
'The NPC will avoid providing government guarantees for projects and we believe not to deal with projects with respect to their nature.'
Alimorad said Germany's current credit line is three billion euros in value and it is predicted will rise up to the ceiling of six billion euros but Iran is in talks for more six billion euros in addition to the three billion euros credit line.
He said, 'We use many methods of investment and financing petrochemical projects. To this end, a foreign company is to provide 200 million euro finance for project of a private company. Any success to activate even a credit line of 100 million euro for Iran on part of German Hermes, we will be able to change international atmosphere and prepare the ground for major credit lines with other companies.'