Iranian Minister of Economy and Finance Safdar Hosseini announced Tehran would float bonds in foreign markets worth $1.4 billions to finance the development of the latest phases of the country’s huge South Pars natural gas fields in the Persian Gulf. The new bonds will be issued next week.
Iran has been unable to attract direct foreign investments needed to start construction activities in phases 15, 16, 17 and 18 of the South Pars fields, and is now relying on global markets to borrow the capital to develop the gas fields.
In a related development, the Iranian parliament, Majlis, authorized the government to issue additional foreign bonds worth $7 billions to raise capital for the country’s oil industry in the coming Iranian calendar year that starts 21 March. Majlis also authorized the government to issue bonds worth $2.8 billions for the defense and transportation industries.
Experts believe Iran would not be able to raise more than $11 billions in major global markets in the next year. Its ability to raise the capital in the more expensive secondary markets is also not certain.
The government did not announce issuance of any rial-dominated bonds for the Iranian citizens to directly participate in South Pars development.
1 comment:
Iran's South Pars exploration is in the hands of IRGC's Khatam al-Anbia ('Seal of the Prophets') HQ. And much of the petrochemical facilities in the south that process natural gas are also in the hands of the IRGC. Who on earth would want to invest in a business venture controlled by IRGC?
By the way, despite receiving billions of dollars from the state, the IRGC is years behind in its work, while Qatar is exploiting its part of the shared gas fields. Not surprising, given IRGC's lack of expertise and management skills.
So, let's see who will rush to take up this offer.
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