Economy, Business And Markets

Tejarat Crowdfunding to Finance Oil Projects

Tejarat Crowdfunding to Finance Oil ProjectsTejarat Crowdfunding to Finance Oil Projects

Tejarat Bank, the Oil Ministry and the National Iranian Oil Company have reached an agreement on devising a new method of finance for oil projects related to crowdfunding.

The news was announced early Wednesday in a meeting attended by officials of the bank and NIOC.

Tejarat Bank CEO Reza Dolatabadi and Chairman of the Board Heibatollah Sami’ were representatives of the lender’s side and conferred with Ali Kardor, CEO of the national oil company.

“If this model is implemented, Oil Ministry projects will be financed with the cooperation of Tejarat Bank and the participation of an interbank syndicate, in addition to public participation,” Dolatabadi was quoted as saying by the bank’s website.

“We hope to implement this modern project in the best way with the cooperation of the Central Bank of Iran and other related entities,” he added.

Kardor pointed to the longstanding cooperation between the bank and the Oil Ministry and referred to Tejarat Bank as “the corporate bank of NIOC”.

“Both sides need to constantly keep an eye on the sustainable development of the energy sector,” he said.

The NIOC chief expressed hope that the implementation of the new finance method will be a positive step for meeting the needs of the company and the Oil Ministry.

The Tejarat chief executive also pointed to the long history of cooperation between his bank and the Oil Ministry, stressing that the lender is committed to open a new chapter in mutual relations.

“Controlling the false fluctuations of foreign exchange rates and its effects on other sectors of the economy is one of the most serious macroeconomic concerns,” Dolatabadi said.

Foreign currency rates have registered significant growth in the past few months with the US dollar surging above the 45,000-rial psychological barrier and then going past 46,000 rials. The greenback’s rally, however, has cooled down and the American currency was traded at 45,330 rials at Thursday’s close.


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