Iranian Central Bank to issue $8.2 billion in bonds

Business Materials 9 October 2012 18:18 (UTC +04:00)

Azerbaijan, Baku, Oct.9/ Trend G.Mehdi/

The Central Bank of Iran will issue 100 trillion rials (some $8.2 billion) in the current Iranian calendar year, which ends on March 20, 2013, IRIB News reported.

In the first phase, 25 trillion rials worth of bonds will be issued on October 13 and will be offered to the public for a week, according to the report.

On July 11, an official at the Iranian Oil Ministry said the Central Bank of Iran has opened a $10 billion line of credit for a number of domestic oil projects in the upstream sector.

"Benefiting from 18 percent of assets of the National Development Fund; issuing $10 billion in foreign currency bonds; issuing 15 trillion rials in bonds; and selling $10 billion worth of shares and properties of the Oil Ministry are among other sources of finance for the oil projects," Mohsen Khojasteh-Mehr told the Shana News Agency.

On July 2, the National Development Fund and the Oil Ministry signed an agreement, based on which the NDF will earmark $14 billion of its assets to oil industry projects.

Over 70 percent of the sum will be spent on the development of oil and gas fields as well as expanding the upstream sector of the oil industry, Oil Minister Rostam Qasemi said, adding that the rest will be channeled into the refining industry.

President Mahmoud Ahmadinejad has said that the National Development Fund's assets will hit $55 billion by the end of the year (March 20, 2013).

According to the Fifth Five-Year Development Plan (2010-2015), the National Development Fund was established to transform oil and gas revenues to productive investment for future generations.

Iran transfers 20 percent of oil revenues to National Development Fund.