A US$1 billion letter of credit (L/C) from Bank Sepah is backing one of Iran's largest industrial projects.

The bank is able to provide this as well as other high value L/Cs on such a scale due to the US$11.17 billion allocation made to it from the National Development Fund of Iran. (NDFI).

Industrial mega-projects

The fund's foreign exchange resources have been used to bankroll major national projects in the last Iranian year.

Bank Sepah's billion-dollar L/C supports the Bid Boland II Gas Refinery, one of Iran's most important mega-projects, which has also obtained financing from Tejarat Bank, Bank Mellat, Parsian Bank and Bank of Industry and Mines.

L/C performance

Bank Sepah's CEO, Mohammad Kazem Choghazardi, is also keen to point out how much L/C business the bank has written.

In the last fiscal year, Bank Sepah opened L/Cs valued at over US$3.3 billion and provided US$6.66 billion worth of loans to customers.

Apart from the gas refinery, these resources support several mega-projects or their developers, including Saba Arvand Oil and Gas Development Company, Sarvak Azar Engineering and Development Company, Dana Kish Drilling Company as well as several petrochemical projects.

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