Iranian government to issue $6 bln in bonds

Business Materials 28 December 2013 13:10 (UTC +04:00)

Baku, Azerbaijan, Dec.28

By Fatih Karimov - Trend: The Iranian government has allowed ministries of oil, energy, transport, telecommunications, defense, and agriculture to issue 150 trillion rials (about $6 billion) worth of bonds, the Fars News Agency reported on Dec.28.

The bond issuance will be implemented in line with the budget act of the current Iranian calendar year.

Meanwhile, Iran's next year budget bill has envisaged issuing €12.5 billion worth of bonds to finance oil, gas, petrochemicals, and industrial projects, the Mehr News Agency reported on Dec.8.

The National Iranian Oil Company, the National Iranian Gas Company, and the National Iranian Petrochemical Company will issue €5 billion, €1 billion, and 2 billion, respectively, according to the bill.

It is while more than 40 trillion rials (about $1.6 billion) worth of bonds were sold three years ago to finance South Pars gas field development plan, but none of the phases of the gas field has come on stream yet.

Iran's next year budget bill has set the ceiling budget at 7830 trillion rials (about $315 billion based on the U.S. official exchange rate of 24,850 rials), the Fars News Agency reported on Dec. 8.

The figure shows 8.4 percent growth year on year.

Meanwhile, the national development budget has been announced at 1950 trillion rials (about $78 billion), a 240 percent rise compared to the year before.

Iran's next calendar year starts on March 21, 2014.