Iranian Petrochemical Company to Issue $500mln of Bonds

Iran’s National Petrochemical Company (NPC) will issue 6 trillion rials (approximately USD500 million) denominated bonds during this year’s fall to develop the petrochemical industry, head of the company said.

NPC Managing-Director Abdolhosain Bayat told Shana that the necessary permission has been issued for the issuance of the bonds.

He said the bank in charge would be announced in the near future so Iranians would be able to help development and progress of petrochemical industry further through insuring investment in the sector.

“There is no doubt that funding petrochemical projects and development plans will be followed by progress of the industry and diversification in petrochemical products that in turn could complete value chain in the industry,” the official noted.

Referring to article 44 of the constitution as the guarantor of independence from state-run economy and encouraging competitiveness, Bayat said, “By implementation of the principle and promoting privatization, petrochemical industry has changed into a dynamic industry.”

He noted that NPC would support all private petrochemical companies, adding the government should provide more opportunities for investment in the sector so that people have more incentives to invest in the industry, which in turn would result in curbing selling raw materials, boosting production of intermediary products and preserving crude oil reserves as a wealth.

Iran’s investment in petrochemical industry has grown rapidly. Total investment in petrochemical industry stood at 14 billion dollars over the fourth five-year development plan ended in 2010. Currently a number of petrochemical projects are under way with near 14 billion dollars investment.