Economy, Business And Markets

5 Banks to Finance Gas Project

5 Banks to Finance Gas Project5 Banks to Finance Gas Project

The largest banking consortium in the country comprising five lenders has been founded to finance a gas processing plant along with four other banks.

Kamel Taghavinejad, CEO of Bank Sepah made the announcement saying the consortium is a partnership between Bank Sepah, Bank Mellat, Bank Tejarat, Bank of Industry and Mine, and Bank Parsian to finance Bid Boland II gas processing plant in Khuzestan Province, Sepah’s website reported Sunday.

The consortium is expected to lend $2.2 billion to the Persian Gulf Petrochemical Industries Co. -- the project’s contractor.

“Bank Sepah has provided the largest chunk of the loan with $800 million, while the other banks have allocated $350 million apiece using the resources of the National Development Fund of Iran,” Taghavinejad said.

Bid Boland II plant would generate $750 million in annual profits after its establishment and bring $1.5 billion annually to the country in added value.

 Equipment worth € 300-350 million will be provided for the project by the fiscal yearend (March 20, 2016) and the refinery is slated to come on stream by 2018.