Bank Sepah has opened a $1 billion credit line for a gas refinery project, as the first tranche of a $2.2 billion syndicated loan, said Bank Sepah’s chief executive.
“Iran’s largest banking consortium, consisting of Bank Sepah, Tejarat Bank, Bank Mellat, Parsian Bank and Bank of Industry and Mine has approved the business plan of Bidboland Gas Refinery and is set to fund the project through the National Development Fund of Iran’s resources,” Mohammad Choghazardi was also quoted as saying by Bank Sepah's website on Sunday.
“It is the largest syndicated loan paid by the Iranian banking sector. Sepah, as the lead lender, allocated its share soon after the approval.”
The Bidboland II plant would generate $750 million in annual profits after its establishment and earn $1.5 billion annually for the country in added value. The refinery is slated to come on stream by 2018.
The refinery is expected to produce 1 million tons of propane, 500,000 tons of butane, 1.5 million tons of ethane for ethylene production and 400,000 tons of liquefied petroleum gas per annum.
The loan is aimed at fostering the economy, as “it is in line with plans to increase the volume of non-oil exports”, the banker said, adding that the project is also expected to create 8,000 jobs.
Referring to Sepah’s potentials for financing major domestic projects, he said, “Our bank has used $10 billion worth of NDFI’s (Iran's sovereign fund) resources for financing national projects in the past two years.”
Choghazardi also elaborated on the current state of his bank’s international operations.
“Bank Sepah International Plc, Sepah’s subsidiary in London, has recently joined Target 2, the European payment and settlement network,” he said.
“The bank’s branches in Frankfurt, Rome and Paris have also resumed operations [after the lifting of western sanctions against Iran in January 2016].”
Bank Sepah, established in 1925, is a commercial bank owned by the government. It has 1,800 branches across the country.
Add new comment
Read our comment policy before posting your viewpoints