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Iran to sell bonds worth $1.1 billion to develop South Pars

Oil&Gas Materials 10 February 2011 11:53 (UTC +04:00)

Azerbaijan, Baku, Feb. 10 / Trend, A.Yusifzade /

According to the Public Relations of Pars Oil and Gas Company, the third stage of the sale of these bonds with a volume of eleven trillion Rials ($1.1 billion) is going to start in less than a week, following the our compatriots' extensive reception of the second stage of the publication of the Participation Bonds.

In accordance with the arrangements made with the Central Bank, the new series of these bonds is due to be published in order to respond to the extensive request of our compatriots to develop the largest South Pars gas field of the country.

According to the schedule, the new South Pars Participation Bonds are issued for a period of 4 years, with an interest rate of 17 percent and they are tax-free. Also, in case of the customers' withdrawal from participation, the bonds are to be bought back before their maturity date, receiving a 16.5 percent interest.


New South Pars participation bonds will be sold in selected branches of Bank Melli and Bank Saderat Iran.
Earlier, Iranian deputy oil minister Ahmad Galebani said Iran has allocated bonds worth some $6.3 billion for its oil and gas industry to help finance development of its energy projects in 2010.

According to managing director of the Pars Oil and Gas Company (POGC) Ali Vakili all the allocated bonds to Pars Oil and Gas Company (POGC) were sold but by special attention of the government and the minister of petroleum efforts, part of other company's bonds redirected to POGC to finance the development of the South Pars gas field projects.

This year budget permits Iranian ministry of petroleum to issue nine billion euro denominated bonds of which 5 billion were allocated to POGC.

According to Vakili remarks, POGC is in talks with Central Bank of Iran (CBI) to finalize the necessary mechanisms for offering new series of bonds predicting related contracts to be finalized with Bank Saderat Iran, Bank Sepah and Bank Tejarat soon.

Noting that principal and interests of the bonds are being guarantied by the National Iranian Oil Company (NIOC) Vakili pointed out that the profits are going to be paid through South Pars gas field revenues so by understanding of the effects of this giant gas field development on national economy it is expected Iranian compatriots to take part effectively in buying the bonds.

Referring to a daily $10 million and yearly $3.3 billion revenue from each phase of the South Pars gas field, POGC managing director noted that this potential is the best guarantee for buying bonds on the one hand and participation in raising national wealth and reaping remarkable profit on the other hand.

One of the world's biggest oil and gas producers, Iran has been hit by international sanctions that have frightened away international energy companies.

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