Iran is seeking letter of credit (L/C) funding from potential Japanese and South Korean investors to fund the rehabilitation and expansion of its petrochemical facilities.

Raising investment capital and L/Cs have been difficult for Iran until the recent easing of financial sanctions imposed on the Islamic Republic due to concerns over its nuclear plans.

Forward planning

Iran is pressing ahead with plans to boost the country's petrochemical industry and increase exports of petroleum-based goods.

Managing Director of Iran's Petrochemical Commercial Company International (PCCI), Isa Mashayekhi, has told Iran's Shana news agency that it is looking for L/C funding of EUR 520 million for several petrochemical projects.

Asian outlook

A subsidiary of Persian Gulf Petrochemical Industries Company (PGPIC), PCCI has already initiated negotiations with Japanese and South Korean investors to obtain funding according to Mashayekhi.

He added that he expected the L/Cs to be backed by state guarantees issued by the ministry of economy and finance.

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