Bank Mellat Starts 1st Phase of Iran Bonds

Iran's Bank Mellat says it will issue bonds worth of €1 billion beginning in 10 March 2010 for a 120 days period and in the first step bonds worth of €250 million will be offered.

General Director of Foreign Affairs at Bank Mellat, Saeed Ghafari said bonds worth of €1 billion would be issued in four steps and as the first phase, €250 million bonds would be offered as of 10 March 2010 through Iranian banks abroad.

“It is expected the bonds to be sold before the assigned time due to their high return, low risk and good interest rates”, said Ghafari noting that offering bonds has been included in 1388 (March 2009 – 2010) budget.

Meanwhile, Vice President for investment at the National Iranian Oil Company (NIOC) said that the company guarantees the bonds noting that international reputation of NIOC supports the move.

Hojatollah Ghanimifard pointed out that there are different ways to provide resources for oil industry projects including buyback and finance noting that but it is not confined to these methods. Ghanimifard went on to say offering bonds is one of the ways to finance oil and gas projects and to diversify financing oil and gas projects. – Shana