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Oil Ministry to Issue Forex Bonds

Oil Ministry to Issue Forex BondsOil Ministry to Issue Forex Bonds

Iran’s budget bill for the next Iranian fiscal year (starting March 21, 2015) authorizes the four principal companies affiliated to the ministry of oil  to issue foreign exchange bonds worth 9 billion Euros ($11.14 billion), ISNA reported.

The proposed budget sets aside foreign exchange bonds and Sokuk (financial certificates like bonds which comply with Sharia or the Islamic law) equal to 5 billion euros ($6.18 billion) to the National Iranian Oil Company (NIOC), 1 billion euros ($1.24 billion) to the National Iranian Gas Company, 1 billion euro ($1.24 billion) to the National Petrochemical Company, and 2 billion euros ($2.48 billion) to the National Iranian Oil refining and Distribution Company.

Also note 6(A) of the proposed budget licenses companies which are either associated with or affiliated to the ministry of oil, ministry of roads and urban development, ministry of defense and armed force logistics, ministry of communications, ministry of industry, mine and trade, ministry of agricultural jihad, and the atomic energy organization of Iran to issue Iranian currency bonds and Sokuk  within the legal and regulatory framework,  amounting to maximum 100 trillion rials ($3.7 billion) to give the go-ahead to financially and technically viable projects. The budget gives priority to projects related to joint oil and gas fields with neighbor countries, transboundary water management and transportation projects.

 

Financialtribune.com