Foreign banks show interest in NPC's development program

European and Japanese banking institutions are interested in contributing to the NPC's investment projects. Following NPC's policy to use its export receivables as a collateral of the financing packages its secures and the conclusion of its first general agreement with a Deutsche Bank-led consortium of international banks, which was concluded on June 16 2000, NPC has received positive signs from interested Japanese and European banking institutions to either arrange short or medium term structured export or increase the amount of the previously concluded framework with a consortium of European banks led by Deutsche Bank through joining the consortium
On June 16, 2000, NPC and a consortium of international banks, led by Deutsche Bank, signed a Euro 550m structured financing package to finance NPC's major investment projects
(News Bulletin #6).

Euro 325m Financing Arrangements from Italy are to be concluded

During the 3rd quarter of the year 2000, NPC succeeded to complete the respective administrative and legislative measures in respect of financing arrangements for its 3 top priority projects, namely Engineering Polymers, PET 2 and Methanol 3.
The projects are awarded to Italian contractors and the relevant financing arrangements will utilize the official support of the Italian export credit insurance agency, SACE, backed by the guarantee of Iran's Ministry of Economic and Finance Affairs. All the three projects are being implemented within the framework of the NPC's 2nd development plan at Bandar Imam Petrochemical Special Economic Zone.
Based on a report made by the NPC International Ltd., financing arrangements are awaiting final approval by SACE, which would have been granted by September 2000.

NPC to raise fund for olefin no. 6 facility through subscription

NPC will offer subscription for its subsidiary Amir Kabir Petrochemical Company, which is responsible for executing and running the olefin no. 6 project, to provide parts of the financing the project requires. The offer is expected to be launched in October 2000. Olefin no. 6 project is already under construction at Special Petrochemical Economic Zone (Petzone) south of Iran.
In 1998, NPC offered Rials 200bn of subscription to the public for its Kharg methanol project. The project came onstream in early 2000.