European banks led by DB increase the amount of a financing package to NPC

NPC and a consortium of European banks led by Deutsche Bank agreed to increase to EURO 1.03bn the amount of the EURO 550m structured financing package they had concluded in June 2000. Documents related to the increase of the facility was signed on 28 May 01 in Frankfurt. The increased package is provided by a consortium of banks led by Deutsche Bank. The package consists of two framework agreements and shall serve to finance major NPC projects in Iran. NPC will utilize the funds mainly to finance contracts it awards to European Union engineering companies. The financing structure is established with the involvement of experienced trading companies that are entered into adequate off-take agreements and relies upon an off-shore collateral structure from which also the export credit agencies will take comfort. The package will meet up to %100 of the financing requirements of the envisaged investment projects under the NPC's current development program. The first tranche has been utilized to finance contracts that NPC has awarded to the German contractor Linde. The financing is partially covered by German and Italian export credit agencies Hermes and SACE respectively. Further NPC contracts are intended to be financed under the second tranche and have already been awarded by NPC inter alia to Italy's Tecnimont and Germany's Krupp Uhde. Given the interest in the banking community, 20 international banks decided to join the Arranger Group and thus to provide for this significant increase in the total amount of the facility. Alongside Deutsche Bank, as Lead Arranger, as well s AKA Ausfuhrkredir-Gesellschaft, IntesaBci, Bayerische HypoVereinsbank, BHF-Bank, Commerzbank, DG Bank, Kreditanstalt fur Wiederaufbau, Societe Generale and Westdeutsche Landesbank as CO-Arrangers, the following banks have now joined the consortium: ANZ Banking Group, Bayerische Landesbank, BNP Paribas, Credit Lyonnais, DGZ-DekaBank, Dresdner Bank, Erste Bank der oesterreichischen Sparkassen, Fortis Bank, Landesbank Hessen-Thurigen, Natexis Banques Populaires, Norddeutsche Landesbank, Raiffeisen Zentralbank Osterreich, Arab Banking Corporation Daus & Co., GZ-Bank, IKB Deustche Industriebank, KEIC Bank, WGZ-Bank, Arab Bank, Fuji Bank and Landesbank Baden-Wurttemberg.

NPC to set up a petrochemical investment fund abroad

NPC has taken preliminary steps to set up a petrochemical investment fund outside Iran. Speaking at the 3rd Iran petrochemical Forum (IPF), Mohammed Reza Nematzadeh, Deputy Petroleum Minister and NPC President announced that NPC would form the fund at the behest of Iranian expatriates and foreign nationals interested in investing in Iran's petrochemical industry. The fund would allow both Iranian expatriates and foreign nationals to invest in the Iranian petrochemical industry. The formation of this fund stands on the NPC's agenda for the current year.

NPC and CCC establish joint venture company for construction activities

NPC and the Athens based Consolidated Contractors Company (CCC) have established a joint venture company named International Petrochemical Construction Company (IPCC) which will be active in the construction of on/off shore projects inside and outside Iran. IPCC establishment follows the agreement signed in April 2000 between NPC and CCC. IPCC's first board meeting was convened in Tehran on 24 April 2000 by its shareholder companies comprising of NPC, CCC and TAAS. Mr. S. H. Sadat, NPC's Director of Projects was named Chairman and M. Saudi, CCC's Vice President, was named as Chairman of IPCC. IPCC's initial capital is $10m.