Iran's petrochemical companies share 20% of capital market
Tehran, Iran, Oct.9
Iran's petrochemical companies share 20 percent of country's capital market, and their offering at the stock exchange will help the development projects, said the managing director of Persian Gulf Petrochemical Industries Company (PGPIC).
Jafar Rabie was speaking at the 5th Iranian Petroleum and Energy Club Congress & Exhibition, Trend reports.
"Although the stock exchange is limited, it will create transparency in value of companies shares, so they can issue bonds or take loan. People trust big companies in stock exchange, and the companies can use the capital from shareholders to provide its financial sources," Jafar Rabie added.
"The Persian Gulf Petrochemical Industries Company has assigned around $1 billion to companies that have daily profit and income in market. These companies can provide finance to projects," he noted.
According to Jafar Rabie, the company offered shares worth $476 million in stock exchange during current Iranian year (started March 21, 2019), and two subsidiary companies of PGPIC offered shares worth $404 million shares.
"The Persian Gulf Petrochemical Industries Company has the permission to use 30 percent of its foreign currency revenues in development projects," he noted.
"Currently, our financial sources are not allowed to leave the country; therefore, we have to pay 10 to 15 percent fee to transfer money ," said the managing director referring to foreign currency policies of Central Bank of Iran.